Spotify reported Q1’24 results this week and stated that it will now be consistently profitable going forward.
The profitability indicator I like to pay attention to is gross profit/employee. On an annual basis it was 520,000 euros.
At that level Spotify really should be able to continue operate profitably and if it grows gross profit faster than employee, marketing and G&A costs it should see increased profits.
With revenue growth of ca 20 % year-over-year and increasing gross margins that should be very doable.
