Soundcloud finally stopped losing money

Updated: Mar 2, 2021

Soundcloud revealed they made a profit in the third quarter of 2020. Which is the first time they made a profit since launching the platform in 2007. They have also shared their final numbers for 2019, which show a significant uptake in revenue and drop in costs.

SoundCloud hasn’t revealed how much profit they made, just that they made a profit. The platform has been famously losing money since it began, but this seems to finally have come to an end. Their profits are in part due to their rising revenue, which in 2019 was up 43% compared to the year before. SoundCloud also cut down their costs 28%, from €32.9 million in 2018 to €23.8 million in 2019.

How SoundCloud makes it's money can be divided into two different categories, its "Listeners Business" and its "Creator Business". The listeners business is where they sell ads on their platform and charge users for subscriptions. The creator business is where creators pay SoundCloud for different tools and services, like a Soundcloud Pro Unlimited account. In 2019, the company made €99,5 million from the listeners side of the business and €48.1 million from the creators side of the business.

According to SoundCloud, the content of 12 million creators - which include musicians, DJ's and podcasts hosts - is played every month. They also claim 80.000 artists have been able to monetise their music on the platform using SoundClouds own distribution service, Repost. Kerry Trainor, CEO of SoundCloud wrote in a press release:

"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."

Source: Music Business Worldwide