SoundCloud has responded to its recent rumours of its closure following the company’s 2014 financial results release.
Following the release of SoundCloud’s 2014 results, publications across the board started spreading rumours of its eventual closure. “SoundCloud losses show a broken business model in desperate need of a fix” and “SoundCloud losses show a broken business model in desperate need of a fix” were just a few of the many reactions to the results release.
With an increase in expenses, employees, and salaries and wages, SoundCloud’s revenue of just $15.6 million saw its overall net position result in a loss of $44.19 million.
SoundCloud released the following statement to clear the air:
SoundCloud filed its 2014 accounts with Companies House. Beyond the full-year financials for 2014, which reflect those of a company in a strong growth stage, they show that, in 2015, we secured $77m of incremental capital, some of which came from our existing investors, demonstrating their belief in the future of the company, and the rest of which is a flexible credit line from Tennenbaum Capital Partners, an attractive option for companies like SoundCloud, who have a solid credit rating and are on a clear path to global success.
Since we began, we’ve been building a completely unique platform. SoundCloud users can discover more creators, at all stages of their careers, than anywhere else, and more music and audio: over 18 million creators are using the platform, sharing well over 110 million tracks, and reaching 175 million monthly active listeners. Additionally, comScore recently listed SoundCloud as being the 8th most popular app among millennials based on usage in the US.
Over the past year, we’ve continued to bring partners from the music industry onto SoundCloud. We’ve signed deals with PRS and UMG/UMPG, to add to the nearly 200 deals we’ve already signed, including those with Warner Music, Merlin and NMPA, as well as MCNs and independent creators. We’re focusing on enabling creators to get paid for their creativity, and on building a financially sustainable platform that our community can enjoy for years to come.
What do you think? Is SoundCloud’s statement just another assuring bluff for investors and stakeholders? Or is it truly in control of its future and able to steer round their fortune?
Khushrav’s passion for dance music started early on as he began creating weekly podcast episodes of the latest electronic music across genres and has mixed over 200 episodes over a span of 5years. As a dance music enthusiast, Khushrav still keeps up to date with every week’s releases, contributing to THE’s Spotify playlists.
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