British audio-streaming service Mixcloud published its financial results for 2018 showing mixed results with revenue at £2.44m (around $3.1m), which was growth of 45.7% from 2017’s revenues of £1.68m.
Company losses increased, however, from £884.8k in 2017 to £3.04m in 2018 as its cost of sales grew from £1.44m to £1.83m, with administrative expenses nearly quadrupled, from £1.07m to £4.02m.
The company ended 2018 with net assets of £5.53m compared to £1.35m at the end of 2017.
Mixcloud is a boutique British online music streaming service that allows for the listening and distribution of radio shows, DJ mixes and podcasts, which are crowdsourced by its registered users and uploaded by more than a million curators.
“The directors have a reasonable expectation that the group will have adequate resources to continue meeting its liabilities and operating for the foreseeable future,” explained the company’s directors report.
Mixcloud raised its first ever funding round in April 2018: reported as $11.5m from US media group WndrCo.
The company signed its first direct licensing deal, with Warner Music Group, in October 2017 – having previously operated under radio-style blanket licensing. That deal was followed by an agreement with Universal Music Group in October 2018, then indie licensing-agency Merlin in November 2018. In December that year, the company launched Mixcloud Select, an option for individual channels/creators on its platform to charge monthly subscriptions.
Mixcloud’s launch of a ‘Premium’ subscription in July 2019 are outside of the accounting, of course. The launch came alongside some new limits on free listening on Mixcloud.
“Since we started building this platform, the royalty costs we pay for every person who listens for free have steadily risen. Today, the revenue that we make from advertising simply doesn’t come close to covering these costs,” said Mixcloud.