SoundCloud’s annual revenue up 43% to nearly $28 million
SoundCloud has achieved the improbable and boosted its gross revenue 43% in a single year, according to financial data analyzed by Digital Music News. The data, provided by company financial intelligence purveyor PrivCo, indicates that the streaming service brought in nearly $28 million over the past year- an astronomic 43% increase from 2015, most likely driven by advertising revenue.
The spike in revenue could spell out a hopeful change for the service, which posted losses of $43.9 million in 2014. In February 2016, SoundCloud’s financial auditor KPMG issued a wary statement to investors:
“The directors have concluded that the combination of the circumstances… represents a material uncertainty which may cast significant doubt upon the Company’s and Group’s ability to continue as a going concern… Therefore the Company and Group may be unable to realize its assets and discharge its liabilities in the normal course of business.”
Licensing deals and a new paid tier, Go, have provided the company with additional income streams, though the conversion rate for Soundcloud’s 175 million global users to the subscription tier has been essentially negligible. Amidst consistent rumors regarding SoundClound’s uncertain future, a positive theory about the platform is a welcome change.
Via: Digital Music News
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Categories: Music