After slashing 40% of its staff in a bid to deal wit mounting net losses, SoundCloud’s financial future appears to be looking up.
The streaming service recorded sales in 2017 that exceeded its goal of $100m and has made gains on its user base numbers over the past three quarters.
That’s according to CEO Kerry Trainor in a FT interview.
Trainer took over from Alex Ljung in August last year after the company received a $169.5m funding injection from Temasek and Raine Group.
The investment brought the company back from the brink after its annual accounts filed in 2015 raised concerns over a lack of cash.
According to a filing at Companies House (UK), SoundCloud Ltd’s revenues grew 21.6% to €21.1m ($22m) in 2015 – but its net losses accelerated 30.9% to €51.22m ($52m).
In July last year, SoundCloud closed its offices in London and San Francisco and axed 40% of its workforce (173 jobs) in a dramatic cost-cutting move.
Now Trainor, who has 20 years of experience working with music and video streaming products, most recently as Chief Executive Officer of Vimeo, said SoundCloud “has never been healthier financially”.
By re-focusing on selling tools to artists and podcasters, Trainor told the FT that the service has a distinct future.
The company has “significantly reduced the [cash] burn” and reportedly achieved a few cash flow positive months.
He continued: “There was a period, for literally over a decade, when no one was sure anyone would pay for music ever again. It’s exciting to be able to forget that now.”
Music Business Worldwide