Soundcloud Reveals Nearly $60 Million in Losses in 2014

Soundcloud reports financial numbers from 2014 and shares more plans for the future
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Soundcloud reports financial numbers from 2014 and shares more plans for the future
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Soundcloud has been making strides to stay relevant in the music streaming sphere, but the company's financial situation is now of greater concern. As recently reported, Soundcloud experienced $56.5 million in losses in 2014, which is a big increase from their $29.2 million in losses from 2013. It's not uncommon for a company to operate while in the red and the idea of a paid subscription service could help them get back on track.

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“Our overhead base has increased faster than our revenues. After making inquiries, the 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. The Group’s business plan shows that further capital investment will be required in the next 12 months to fund the business.”

Although many may be worried about the $56.5 million in debt, Soundcloud did acquire $60 million in investments in 2015. Plus, they raised $35 million at the beginning of this year and have been making a lot of big moves to improve their streaming platform. With that in mind, it still looks as though Soundcloud will be in the red for at least another 3 years. 

"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.” - Soundcloud boss Alexander Ljung

It's clear that Soundcloud has a long road to becoming profitable, but there is still a lot to look forward to. Soundcloud recently landed a big licensing deal with Universal Music Group and is being labeled as "the Youtube of audio." Youtube of course is worth quite a lot and if Soundcloud is on that path, we can definitely expect them to be a strong contender in the music streaming race.

[via: Music Ally]