2017 might have just begun, but it hasn’t brought any good news for Soundcloud. Just days after news broke of Google trying to acquire the streaming giant, a new financial report from 2015 doesn’t spell good news for the music uploading platform.
A new report from Companies House states despite a 21.6% (€21.1m) growth in revenue, Soundcloud suffered a net loss of 30.9% (€51.22m). An accompanying statement from co-founder Alexander Ljung revealed that Soundcloud’s financial position remained on the basis of how successful its subscription service would be, which is only available in the US, UK and Germany last year.
The assumption of a successful launch of the new subscription service is the key element of [our] financial projections for the next three years. Whilst the directors believe that the Group will have sufficient funds to continue to meet its liabilities through 31 December 2017, the risks and uncertainties may cause the company to run out of cash earlier than that date, and would require the Group to raise additional funds which are not currently planned. These matters give rise to a material uncertainty about the Group’s ability to continue as a going concern.
How this loss affects Soundcloud’s future plans still remains to be seen.
H/T: Mixmag
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