Spotify Technology SA
NYSE:SPOT

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Spotify Technology SA
NYSE:SPOT
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Price: 458.46 USD -0.53% Market Closed
Market Cap: 92.1B USD
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Gross Margin
Spotify Technology SA

28.7%
Current
26%
Average
44.3%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
28.7%
=
Gross Profit
4.3B
/
Revenue
15.1B

Gross Margin Across Competitors

Country LU
Market Cap 92.7B USD
Gross Margin
29%
Country US
Market Cap 390.3B USD
Gross Margin
45%
Country US
Market Cap 206B USD
Gross Margin
36%
Country NL
Market Cap 44.9B EUR
Gross Margin
43%
Country US
Market Cap 30.6B USD
Gross Margin
25%
Country US
Market Cap 25.6B USD
Gross Margin
42%
Country US
Market Cap 24.4B USD
Gross Margin
0%
Country CN
Market Cap 19.8B USD
Gross Margin
41%
Country FR
Market Cap 16.5B EUR
Gross Margin
32%
Country US
Market Cap 16B USD
Gross Margin
48%
Country US
Market Cap 14.6B USD
Gross Margin
54%
No Stocks Found

Spotify Technology SA
Glance View

Market Cap
92.6B USD
Industry
Media
Economic Moat
Narrow

Spotify Technology S.A., founded by Daniel Ek and Martin Lorentzon in 2006, emerged as a revolutionary force in the music streaming industry, transforming how people consume music. The company, headquartered in Sweden, turned the music world on its axis with its user-friendly platform that allows seamless access to a vast library of music tracks and podcasts from across the globe. Spotify operates on a freemium model—users can opt for an ad-supported free service or pay a subscription fee for an enhanced, ad-free experience with additional features like offline listening. This dual-tier service has been central to Spotify's strategy, drawing in massive user numbers while compelling enough of them to convert to paying subscribers, thus forming a stable revenue stream. The heart of Spotify's business model lies in its relationships with record labels and music rights holders, agreements that enable it to host a monumental catalog of songs. Monetization is primarily driven through subscriptions and advertising. Premium subscriptions not only provide a steady revenue channel but also buffer against the variability of ad-generated income. On the advertising front, Spotify sells digital ad space in various formats, such as audio, video, and display ads within its free service. By leveraging data analytics and user personalization, Spotify enhances ad targeting capabilities, offering value to advertisers through highly targeted campaigns, and, in turn, securing its position as a leading player in the music streaming ecosystem.

SPOT Intrinsic Value
222.74 USD
Overvaluation 51%
Intrinsic Value
Price

See Also

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What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
28.7%
=
Gross Profit
4.3B
/
Revenue
15.1B
What is the Gross Margin of Spotify Technology SA?

Based on Spotify Technology SA's most recent financial statements, the company has Gross Margin of 28.7%.