Spotify's Q1 Profitability Takes Off: What's the Secret Sauce?

Key Takeaways SPOT's Q1 operating income skyrocketed 203% as revenues rose 15% and expenses dropped 3% year over year. The gross margin hit 31.6%, with the Premium and Ad-Supported segments gaining 332 and 885 bps, respectively. SPOT's ROIC beat AMZN's 24%, but its ROE lagged AAPL's 167.2% and AMZN's 24.1% by a wide margin.Spotify Technology S.A.’s (SPOT) first-quarter 2025 profitability was top-tier, driven by robust top-line growth and disciplined expense management. Revenues increased 15% year over yea ...