SoundCloud names new CEO for 2021, platform posts first-ever profitable quarter
If ever there was a “little engine that could” of the cut-throat work of online music streaming, that title would most likely belong to SoundCloud. Through thick and thin, tough times and rapid growth, the German streaming platform has managed to sustain itself despite being threatened by bankruptcy, copyright infringement, general growing pains and artist backlash, and the general casualty injuries that come with being atop the music streaming wars. When SoundCloud named its then-new CEO, Kerry Trainor, the company began turning around by implementing new service tiers and DJ software integrations. Now, for the first time since its inception, SoundCloud can say it’s turned a profit.
SoundCloud’s Q3 Earnings Report
SoundCloud is the No. 2 music app on iOS in the United States, engaging the youngest, most diverse audience of any major audio service.
At the end of quarter three (Q3) filings, SoundCloud reported $165.7 million in 2019 revenues (up 37% year-over-year) to their stockholders. The figure signals significantly faster growth than in 2018. The prior year, SoundCloud posted 19% growth as a result of and other DJ software integrations into its platform. SoundCloud’s latest quarterly earnings report also states that, during the last fiscal year, its platform set all-time highs in metrics including Monthly Active Users (MAUs), Daily Active Users (DAUs), Listening Time (LT), Subscribers, and Advertising.
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While its competitors, Spotify, Apple Music, and YouTube Music, currently have roughly 70 million tracks on each of their platforms, SoundCloud now plays host to over 250 million tracks. While that number is more representative of all the mixes that SoundCloud hosts from small and established artists alike, the company is starting to see the benefits of being an independent music streaming platform while others deal with more restrictions from record labels.
SoundCloud also says that, as of November 2020, 12 million creators are heard on its platform every month, and that over 80,000 artists are now monetizing their work, according to Music Business Weekly. These numbers are made possible from SoundCloud’s own distribution arms, Repost and Repost Select, and its paid tier, SoundCloud Premiere.
Michael Weissman: The new face of SoundCloud
SoundCloud just announced that President, Michael Weissman, will succeed Kerry Trainor as the company’s next Chief Executive Officer, effective January 1, 2021. Weissman succeeds longtime colleague and partner, Trainor, who will remain a member of the Board of Directors.
“I’m honored to lead SoundCloud’s next chapter. The company is in one of [the] most exciting moments in its history, and I’m thrilled to work alongside SoundCloud’s team and Board to lean into our unique position and opportunity in music. Kerry and I have worked together for nearly a decade, and I want to thank him for his vision and leadership to reposition SoundCloud for growth and, personally, for his partnership, friendship, and support for me to take the helm.”Michael Weissman, President
Since joining the company in 2017, Weissman has been a key leader in driving SoundCloud’s growth. He joined the company as COO and was promoted to President in 2019. He has been instrumental in expanding SoundCloud as the principal architect of some of the company’s key strategic initiatives including its music licensing efforts, its US ad sales partnership with Pandora, and the acquisition and integration of artist services company, Repost Network.
“When I first organized the group to invest in SoundCloud in 2017, the mission was to ensure the future of one of the world’s iconic cultural platforms—for creators, listeners, the team, and investors alike. There is only one SoundCloud in this world, which we owe to the vision of our Founders, Alex and Eric. Leading this platform and incredible global team through these transformational years has been an immense privilege. It is a great joy to name–and confirm with the SoundCloud Board–my partner and friend, Mike Weissman, as my successor. I look forward to continuing to work with Mike and the team as a member of the Board.”Kerry Trainor, Chief Executive Officer