• Episode 32 | Spotify’s Business Mix: Growth, Competition, and Margins

  • Feb 20 2025
  • Durée: 21 min
  • Podcast

Episode 32 | Spotify’s Business Mix: Growth, Competition, and Margins

  • Résumé

  • In Episode 32 of “Market News with Rodney Lake,” Rodney Lake, Director of the GW Investment Institute, explores Spotify's business model, which revolves around two main revenue streams: premium subscriptions and ad-supported services. The company operates in a competitive streaming market dominated by players like Apple and Amazon, but is praised for performing well in its niche. Spotify’s revenue reached $15 billion in 2024, growing at 18%, though its margins are relatively modest, with a 30% gross margin and 7.5% net margin. Co-founder and CEO Daniel Ek remains as a key factor in the company's success, with a high alignment between management and shareholders. Despite Spotify's solid business fundamentals and impressive leadership, Lake discusses concerns over Spotify’s valuation, with a high forward PE ratio of 60 times, given its modest growth projections and net margins.

    Send us your feedback

    Voir plus Voir moins

Ce que les auditeurs disent de Episode 32 | Spotify’s Business Mix: Growth, Competition, and Margins

Moyenne des évaluations de clients

Évaluations – Cliquez sur les onglets pour changer la source des évaluations.