Soundcloud Reports $85m in Loss Over Three Years
Their recent financial filings show that the streaming service lost $28.8m in 2014.
SoundCloud’s fiscal situation became even more bleak this afternoon when Music Business Worldwide reported that the Berlin-based streaming music provider was reported to have submitted financial reports that show a loss of $44.19m in 2014 on revenues of just $15.37m. This means that in the three year span from 2012 to 2014, SoundCloud brought in around $42 million as far as income, but also claimed around $85 million dollars in operating loss. Regardless of such a substantial negative loss on paper, SoundCloud’s employee pool grew by 21% to 236 people in 2014 and it’s total expenditure on wages & salaries jumped 42.5% to almost $20 million a year. In 2014 and 2015, SoundCloud accepted $137 million in funding but also failed to close on a 1 billion dollar sell off to Twitter.
SoundCloud recently completed an unprecedented licensing deal with Universal Music Group, in which a single figure equity stake is believed to have been granted to UMG – who agreed to the deal with the stipulation that SoundCloud will launch its subscription tier sooner rather than later. For more information on this report, check out the full article on the Music Business Worldwide website.