https://www.wsj.com/articles/spotif...terly-profit-to-one-time-tax-event-1541068798
This article is hidden behind a paywall, but I found you can bypass it by pasting the link in a website called outline.
https://outline.com/pLRHBU
Their profit was due to their investment in another company. It's not due to their core business and likely will be a one-off affair.
They expect to return to net losses in subsequent quarters.
To do that, Spotify needs leverage, and to get that, Spotify has to grow to become so large that content creators will be willing to pay Spotify for access to its users (something like the iOS App Store). Can it stay around long enough for that? I see it eventually being acquired by either Amazon or Microsoft (the only company without its own music streaming service at the moment).
To me, the main danger from Spotify comes not just from competition (remember, Apple, Amazon, Google each has their own music streaming service), but also from Spotify's core business model. Cost-cutting will only get you so far, and it's increasingly clear to me that Spotify's core business model is never going to be profitable by itself, however may subscribers they get.
Spotify will have to find some other avenues of raising revenue, be it hardware sales, or podcasts, something. And things will only get more heated as Apple Music continues to get more subscribers.