With a 2019 that saw SoundCloud hitting new content milestones and introducing new functionality to the platform, a report from Music Business Worldwide additionally confirms that the company saw record revenues the same year. The filing provided by SoundCloud states that "in Q4 2019, the firm’s 12-monthly gross revenue run-rate exceeded $200m for the first time in history.”
The growth in revenue is good news for the company and the more than 200 million tracks on its platform. As recently as 2016 SoundCloud began monetizing with SoundCloud Go, its premium music service, but the company also nearly ran out of cash in the same year due to exceedingly high operating costs.
Since then, it's been mostly upside. SoundCloud has reduced headcount and overall operating loss between 2017 and 2018 was reduced nearly 50% year over year.
While the competition posed by bigger players such as Spotify and Apple Music still looms large for SoundCloud, the company's latest ventures into new segments is likely to provide them with an additional push.
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The company acquired Repost Network last year to expand its move towards handling content distribution and providing analytics services, a decision with the potential to significantly impact the balance sheet and SoundCloud's overall viability in the years ahead.
H/T: Your EDM