high costs of maintaining a tech company
Spotify’s results are a great example of why we’re seeing tech layoffs. Impressive revenue growth of 18% year over year is dwarfed by costs growth of 44% year over year. Such gaps in costs versus revenue growth scares shareholders which is why layoffs.
I’m lazy but is cost of growth cost of revenue and usually that is not tied to R&D budget aka tech workers which are separate line item. So not really?
yo this fell out of your backpack
So dumb to use Spotify as a “tech” case study.
Spotify has the worst business model for a tech company that owns nothing but servers. 70% of revenue goes to music companies 🤡
I wonder how spotify is surviving to the competition given by Google and Apple. Both have the companies have ecosystem and provide music streaming services. Why would someone want to go for spotify !
Content… Apple also made the dumb decision of not supporting other smart speakers until Recently… the moat has been built
Spotify sucks but a whole generation of millennials are hooked on them and are basically fanatical about it. Their company revenue model sucks and they’re competing against Apple and Google who can subsidize their less profitable music streaming businesses
The economics of the music streaming business is quite poor
Agreed, most tech companies enjoy really fat margins. Using numbers from Spotify is just cherry picking.