SoundCloud in its recently published financial report for 2014 had revealed that its overhead costs have increased faster than its revenue
Doubts have been cast over online audio distribution platform, SoundCloud's ability to continue operations after its financial results of 2014 were recently published by auditing firm KPMG, suggesting that the company was in need urgent of financial aid to continue, according to a report by FACT mag.
This comes despite a deal struck with Universal Music Group last month which was expected to help the company cope with some troubles it has been facing in the recent years.
KPMG which audits SoundCloud was quoted in a Financial Times report saying that the company was in need for more investment which represented a material uncertainty, likely to cast a significant doubt on the company's ability to continue operations.
The company had lost a total of 39.14 million euros ($44.19 million, Rs 302.17 crore) and brought in revenues of only just 17.35 million euros ($15.37 million, Rs 105.1 crore) in 2014. This means that SoundCloud, in the three years (2012-2014), has lost over 75 million euros but has only brought in 37 million euros in income, said the report.
Employee wage cost increased significantly in 2014, rising 42.5% to 17.9 million euros (Rs 138.62 crore). This means that the average the average wage per employee for the year was stood at 79,980 euros (Rs 61.9 lakh).
In 2015, the company had raised $77 million (Rs 526.53 crore) investment, and while the report said that the company had adequate resources to operate in the foreseeable future, it was heavily reliant on further capital investment to continue operating in 2016.
However, the company has maintained that it is in a strong growth stage, and the financials are reflective of that.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "SoundCloud")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}