Agreed that it’s been impressive so far. Looking far down the road, when energy is abundant and cost of compute is minimal, when information can be accrued and accessed widely, I wonder what value Spotify will provide, or what problems it will solve. Kind of like Netflix, it’s already really good at providing dopamine seamlessly. One possible problem I see Spotify solving is using AI to get the user exactly what audio/ info / ad user wanted that other platform won’t provide as well, based on data on the platform exclusive to Spotify. I could see how this could be profitable. Still, the magnitude of problem seems less exciting than the missions for Tesla, Amyris, or Palantir. But at the same time, ultimately our goal as investor is $.
Well written. They have shown amazing user growth. With a focus on efficency now after laying the foundations for podcasts (and audio book development will cost less CapEx as per their comments), Gross Margins will start to grow again and if revenue can grow faster than Operating Expenses (for a software company, it should be able to), operating income will start to reveal itself. If you deleted all podcasts today, their Gross Margins would be 27%+ and no reason Operating Margins with less spending wouldn't be 10-15% already, if they hadn't focused on maximum growth and new verticals (of which I want a company to do instead)