SoundCloud will make annual profits for the first time since the company's inception in 2007.Music business around the worldreports.
SoundCloud CEO Eliah Seton said the German music streaming company achieved positive EBITDA (earnings before interest, taxes, depreciation and amortization) of €2 million this year on projected annual revenue of €288 million. of euros. This is a sharp increase compared to last year, when they ended with a negative EBITDA of 29 million euros.
The report goes on to state that SoundCloud attributes the growth to increased user subscriptions and increased advertising revenue. The company also saw an increase in fees generated by artist tools on the platform.
It's worth noting that the record profits came at a cost for some of SoundCloud's workers. Despite growth in several sectors, the company They laid off 8% of their staffcausing around 40 people to lose their jobs as the organization sought profitability.
“Achieving profitability is important because it reinforces that we are following the right strategy and have taken the necessary steps to turn the business around,” Seton said. MBW.
The news comes after Spotify co-founder and CEO Daniel Ek. cut 17% of the streaming giant's workforceciting a nebulous “gap between our financial target state and our current operating costs.”
thanks to our partners at edm.com
