Spotify Lays Off 6% of Staff As Gross Margins Slump and ROIC Turns Negative

The sad fact of the matter is that Spotify is ultimately a terrible business, and a bear market excels at illuminating precisely this type of company. It has painfully low margins, which will make it especially susceptible to downturns. Its layoffs at this time are thus not a surprise. In this article, we'll take a deeper dive into some of the metrics that illuminate the company's struggles.

SPOT's Revenue, Gross Margin, and Return on Invested Capital (ROIC): An Analysis of Two-and-a-Half Years of Financial Data