{"id":76780,"date":"2020-01-17T14:13:41","date_gmt":"2020-01-17T14:13:41","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=76780"},"modified":"2020-01-20T17:29:30","modified_gmt":"2020-01-20T17:29:30","slug":"soundcloud-with-more-than-200m-tracks-on-its-platform-saw-annual-revenues-top-200m-last-year","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/soundcloud-with-more-than-200m-tracks-on-its-platform-saw-annual-revenues-top-200m-last-year\/","title":{"rendered":"SoundCloud, with more than 200m tracks on its platform, saw 12-monthly revenue run-rate top $200m last year"},"content":{"rendered":"

If there’s one stat that says everything about the recovery of SoundCloud in recent years, it’s this: in calendar 2017, the company turned over circa $102m. <\/a>But just two years later, in Q4 2019, the firm’s 12-monthly gross revenue run-rate exceeded $200m<\/strong> for the first time in history.<\/p>\n

SoundCloud informed MBW about this 2019 financial milestone today (January 17) as we learn, via a detailed filing at UK Companies House, how the firm performed in the prior calendar year (2018).<\/p>\n

In 2018, SoundCloud Ltd. \u2013 whose annual figures are reported in Euros \u2013 turned over \u20ac108m, which equates to $127m when converted to US dollars in line with US GAAP. (The firm’s 2018 report is based on UK GAAP financial requirements.)<\/p>\n

This meant that SoundCloud beat its financial growth targets. Its total 2018 revenues were up 19% year-on-year, but 23% when discounting YoY currency fluctuations.<\/p>\n

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A company spokesperson told MBW:\u00a0 “SoundCloud<\/span>\u2019s 2018 annual report filed to Companies House shows substantial revenue growth and continued loss reductions vs. 2017.<\/p>\n

“2019 results will be filed later this year, but we are pleased to report SoundCloud<\/span> surpassed its full-year growth plans for the second year in a row [in 2018], increasing revenue to $127m (\u20ac108m).<\/p>\n

“We look forward to continuing to grow SoundCloud<\/span>\u2019s unique creator-driven ecosystem and business in the year ahead.”<\/p>\n

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Perhaps most pleasingly for SoundCloud CEO Kerry Trainor (pictured inset) \u2013 plus investors Temasek and Raine Group \u2013 <\/a>the company’s annual operating losses narrowed significantly, from \u20ac51.4m in 2017 to \u20ac32.9m ($38.7m) in 2018.<\/p>\n

This year-on-year op loss reduction was close to 50% (2017: \u20ac49.5m vs. 2018: \u20ac25.1m) when you strip out non-cash stock-based compensation for execs.<\/p>\n

Post-tax loss at SoundCloud hit \u20ac32.0m ($37.6m) in 2018, down from \u20ac63.8m in the prior year.<\/p>\n

According to its freshly-published annual report, SoundCloud has, to date, “amassed the world’s largest and most diverse audio catalogue with over 200m tracks”.<\/p>\n

SoundClound’s previous annual report<\/a> suggested that the platform’s catalog grew by around 20m tracks in 2018 \u2013 or circa 55,000 every single day: its catalog size topped 190m unique tracks in January 2019, versus 170m at the close of 2017.<\/p>\n

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SoundCloud says its key drivers of 2018 growth included:<\/p>\n