SoundCloud has first profitable quarter this year
The pandemic has hit every aspect of the music industry extremely hard, both in person and online. One exception to this, though, is online streaming site SoundCloud. It seems that they’re remaining victorious in the pandemic, and it has actually allowed them to flourish as a company as they reveal that they have had their first ever profitable quarter.
The third quarter of this year showed that SoundCloud had their first profitable quarter, with substantial cash to continue investing into SoundCloud as a business. CEO Kerry Trainor said this:
“With the end of 2020 now in view, we will have achieved our third consecutive year of accelerating revenue growth and our first profitable quarter, with substantial cash reserves to continue investing in SoundCloud.”
They’re also boasting some pretty impressive numbers right now. They posted €147.6m ($165.7m) in revenues last year for the whole calendar year, which meant that they were up 37% versus being up 19% in 2018. Seemingly being ahead of the big bosses like Spotify and Apple Music, they have over 250 million tracks on their platform whereas Spotify and Apple Music host 70 million. Pretty impressive, right? Their numbers hit an all-time high in 2019, so it’ll be interesting to see where they’re at numbers-wise this year when the year is over and all the data is in. A while ago, the company wrote the following in a report:
“While it is too early to predict the impacts on the financial year 2020, we have seen a true mix of tailwinds and headwinds – with strong growth in our creator products and our subscription business lines, along with weakness in our US advertising business which we expect to recover in step with the broader market. With multiple years of consistent growth, and the additional capital raised earlier this year, SoundCloud is well-positioned to weather the anticipated impact to the business and continue a sustainable growth path in 2020.”
You can read the full 2019 report here, as we await 2020’s report.