Spotify Technology (Spotify Technology) COGS-to-Revenue : 0.72 (As of Mar. 2024)

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What is Spotify Technology COGS-to-Revenue?

Spotify Technology's Cost of Goods Sold for the three months ended in Mar. 2024 was $2,861 Mil. Its Revenue for the three months ended in Mar. 2024 was $3,952 Mil.

Spotify Technology's COGS to Revenue for the three months ended in Mar. 2024 was 0.72.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Spotify Technology's Gross Margin % for the three months ended in Mar. 2024 was 27.61%.

Spotify Technology COGS-to-Revenue Historical Data

The historical data trend for Spotify Technology's COGS-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Spotify Technology COGS-to-Revenue Chart

Spotify Technology Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

COGS-to-Revenue

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0.75

0.74

0.73

0.75

0.74

Spotify Technology Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
COGS-to-Revenue	Get a 7-Day Free Trial															0.75	0.76	0.74	0.73	0.72

Spotify Technology COGS-to-Revenue Calculation

Spotify Technology's COGS to Revenue for the fiscal year that ended in Dec. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	10741.549	/	14446.02
	=	0.74

Spotify Technology's COGS to Revenue for the quarter that ended in Mar. 2024 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	2860.87	/	3952.174
	=	0.72

Spotify Technology (NYSE:SPOT) COGS-to-Revenue Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

Spotify Technology's Gross Margin % for the three months ended in Mar. 2024 is calculated as:

Gross Margin %	=	1	-	COGS to Revenue
	=	1	-	Cost of Goods Sold / Revenue
	=	1	-	2860.87 / 3952.174
	=	27.61 %

A company that has a moat can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have moats.

Spotify Technology COGS-to-Revenue Related Terms

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Spotify Technology (Spotify Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Spotify Technology SA (NYSE:SPOT) » Definitions » COGS-to-Revenue

Comparable Companies

Traded in Other Exchanges

SPOT:Mexico 1SPOT:Italy 639:Germany 639:Germany S1PO34:Brazil SPOT:Austria

Address

5, Place de la Gare, Luxembourg, LUX, L-1616

Website

https://www.spotify.com

Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 489 million total listeners. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 87% and 13% of Spotify's 2022 total revenue, respectively.