SoundCloud lost nearly $60 million in 2014
The once prolific SoundCloud has been facing a barrage of hardship over the past couple years, trudging through copyright lawsuits, backlash against mass page deletions, and continued financial hardship. Their recently revealed revenue report for 2014 exposes just how much the company was suffering at the onset of these major issues, with an accrued $56.5 million in losses by the end of the calendar year. This amount is nearly double the $29.2 million in loss reported for 2013.
Despite ongoing controversy, SoundCloud has been working heavily to counteract the negativity facing the service. Throughout 2015, they focused on copyright issues, reaching a settlement for a heavy lawsuit filed against them by PRS over summer. 2015 also brought along a stake in the company claimed by Warner music, with rumors of a deal with Universal brewing as autumn neared, spelling a possible turnaround into the financial black as a total of $60 million was raised by the end of the year.
In January 2016, Tennenbaum Capital Partners invested $35 in debt funding to SoundCloud, bringing in more stability. Along with the release of the 2014 financial report, a spokesperson for the website stated “Directors have concluded that they have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future. However, the Directors have concluded that there are material uncertainties facing the business.” Evidently, they still have some hurdles to cross.
SoundCloud’s leaders have high faith in the company’s revival. Alexander Ljung provided his optimistic outlook: “People have alway recognised the massive scale of SoundCloud and the unique amount of creators and creativity [it has]. Everybody knows that all of the future stars are already on SoundCloud today, and people already know that if you are a star today, you are going to use SoundCloud to create a lot of buzz and promotion around new releases.”
Via: Magnetic Mag