Is Soundcloud On The Verge Of Financial Trouble?
SoundCloud is a platform we're all familiar with, if only from the endless song premieres across music media. So it might pose a bit of a problem if the company ends up going under, right?
According to FactMag, the company's reports of its 2014 finances weren't so great. An auditor also mentions that through 2015, SoundCloud relied fairly heavily on investments.
While SoundCloud brought in €15.37m ($17.35m) in 2014, it lost a total of €39.14m ($44.19m). Employee wages during that period also increased 42.5% to €17.9m, meaning that the average wage per employee for that year totalled €79,980.
The report makes it clear that while the company had “adequate resources to continue in operational existence for the foreseeable future,” SoundCloud was heavily reliant on “further capital investment” to continue operating in 2015.
While the company told FactMag that its numbers "reflect those of a company in a strong growth stage" with "over 18 million creators are using the platform, sharing well over 110 million tracks, and reaching 175 million monthly active listeners," it's difficult to say at this point. SoundCloud is trying to do a subscription-based listening platform coming up soon, which could ultimately put the company back in the black.
Though 2016 could also see some permanent damage done… so time will tell.