SoundCloud Holdings GmbH and its subsidiaries reported revenue in 2021 of 230.7 million euros ($273 million at the average exchange rate in 2021 of 1.18308), up 19% from the prior year, according to audited financial statements published by the privately held company in Germany on Tuesday (Dec. 13). 

SoundCloud, which originally gained popularity for its embeddable streaming widget, has a unique business model that mixes tools for music creators and listening for fans. Fan revenue — from advertising and subscriptions — improved 16.6% to 143.3 million euros ($170 million), or 62.2% of total revenue, down from 63.5% in 2020. Revenue from subscribers grew 20% year over year and exceeded internal expectations, according to the financial statements. Advertising revenue was in line with expectations, with 12% year-over-year growth. 

Revenues from creator tools grew 23.7% to 87.3 million euros ($103 million) and increased to 37.8% of total revenue, up from 36.5% in 2020. The company attributed the improvement to the number of artists that chose to self-release music through the platform to take advantage of organic growth at major DSPs such as Spotify, as well as improving monetization of platforms such as Meta, TikTok and Twitch. 

Founded in 2007, SoundCloud originally gained popularity through its ubiquitous, embeddable music player. It eventually launched a subscription streaming service, SoundCloud Go, in 2016, but did not rank in the top eight music subscriptions in the second quarter of 2022, according to figures released on Dec. 7 by MIDiA Research. Deezer was the eighth-largest subscription service with 9.5 million subscribers and a 1.5% global share. Spotify had the largest share with 30.5%, equal to 187.8 million subscribers. SoundCloud’s financial statements did not reveal the number of subscribers to its streaming service. 

Unlike its peers, though, SoundCloud has always been a unique destination for artists to connect with listeners. The platform offers SoundCloud Next Pro, a service that allows artists to upload tracks to the platform and distribute them to other streaming services as well as pitch music to SiriusXM, which owns a minority stake in SoundCloud following a $75 million investment in 2020.  A 2019 acquisition of Repost Network, an artist rights management and distribution platform, provides SoundCloud with a subscription product that offers creative services such as promotion and marketing.

In January 2022, SoundCloud added a third business segment, called roster, to connect fans and artists. Roster provides support services for emerging and developing artists. Its launch coincided with the announcement of a joint venture with artist management firm Solid Foundation Management to “identify, invest in, and foster the careers of artists featured.”

Gross profit margin — defined as gross profit as a percent of revenue — improved 12% to 35.4% on the strength of growth in subscriptions. Content costs — mainly royalties paid to record labels, publishers and independent artists — totaled 120.8 million euros ($143 million), up 14.1% from 105.9 million euros ($125 million) in 2020. As a percent of fan revenue, content costs declined to 84.2% from 86.1% in the prior year. 

Despite the improved gross margin, operating loss deepened to 21.1 million euros (-$25 million) from 15.4 million euros (-$18 million) in 2020. SoundCloud increased its marketing spending 69.7% and made “significant investments” in headcount to help “propel the company into its next phase of growth.” Although Russia’s invasion of Ukraine has created uncertainties and disrupted supply chains, it has had a limited impact on SoundCloud’s financials, as direct business with partners in Russia accounted for only 0.5% of its annual revenues. 

Since the end of the period covered by these financial statements, SoundCloud announced in August its plans to lay off 20% of its workforce due to “a significant company transformation and the challenging and economic and financial environment,” a spokesperson told Billboard at the time. The company had an average of 451 employees in 2021, up from 392 in 2020, with growth spread across its technology, business and operations segments. 

SoundCloud expects slower growth in 2022 due to inflation and other macroeconomic trends that could stifle consumer spending levels. It expects gross profit “to grow slightly” with a similar or higher gross margin as in 2021. Free cash flow from operations is expected to be “slightly negative” in 2022. 

It also believes it has opportunities to find acquisition targets. In April, it acquired Musiio, an artificial intelligence and machine learning company, for approximately $7 million cash and an undisclosed amount of equity, according to the financial release. SoundCloud believes Musiio allows it to “further leverage its vast data to identify what’s next in music trends and talent” and create playlisting tools for the music industry. 

When Alicia Keys set out to make her first holiday album, Santa Baby, she wanted to make sure it sounded like a project she would put out at any time of year.

“It has a soulfulness, a rawness, it has that New York energy in it too, but it just feels like something you could play from top to bottom,” Keys tells the Billboard Pop Shop Podcast (listen below) about the Apple Music-exclusive album. “And I recorded it like that; we recorded it very consistently over about seven days, and it all really feels cohesive and great. And so I love it. I think now is the time.

“And it’s my first release off of my own independent record label, Alicia Keys Records, so it makes it even better.”

“Soulfulness” was the vibe Keys kept returning to for the album, which was released last month, saying, “It really does harness a sound, and that sound is always going to have that soulfulness. Everything that I touch is going to have a soulfulness, it’s gonna have something that feels warm, I want it to feel meaningful, I want the lyrics to be things that you never forget. I want to create memories.”

The album’s lead single, “December Back 2 June,” is the perfect example of an original on the album, which Keys co-wrote with Tayla Parx, that could really fit in on any year-round Keys project. But there is one Yuletide touch from producer Tommy Parker that gives the song some festive flair.

“I was like, ‘Where did he find this Christmas Jackson 5 song that I’ve never heard in all my life?’” Keys recalls thinking when she heard the high-pitched “It’s just Christmastime” line in the production. “And so I talked to him, and I’m like, ‘Is this a sample? What is this?’ And he had actually created that voice and that kind of sample-sounding pitch. And I fell in love with it, because to me it felt like a ‘You Don’t Know My Name’ or one of these songs that are my style, like that kind of ’70s sample, we’ll put a modern approach on it. And so it totally was 100% me, and he said that he created it with that in mind.”

As for the album’s namesake song, Keys has always appreciated the 1953 original for its ahead-of-its-time boldness. “‘Santa Baby’ by Eartha Kitt is like, by far to me, one of the best-written songs of all time,” she says. “I just love that cheekiness, the flirtiness. I love the way that she approached it, especially … as a woman in that time, that she was totally bold, brave, she wasn’t trying to meet anybody else’s standards. She set her own direction and journey and lane, and so … I was very excited to bring that out, in my style.”

But Keys is most thrilled to become part of people’s holiday traditions with her addition to the Christmas catalog. “There’s timeless music that, every year, you’re gonna hear it and you need it and you love it,” she says. “And I really want to be a part of that group of timeless compositions that you can just forever love, forever depend on, and forever create memories with your family and your loved ones.”

Listen to the full interview with Keys above, in which she also names some of her all-time favorite Christmas music, including Boyz II Men’s 1993 album Christmas Interpretations; Vince Guaraldi Trio’s 1965 soundtrack to A Charlie Brown Christmas (she covers “Christmas Time Is Here” on her new album); So So Def’s 12 Soulful Nights of Christmas from 1996 (on which Keys performs “Little Drummer Girl” — the then-teenager’s first album appearance); George Winston’s 1982 project December; 1973’s A Motown Christmas; and, last but not least, James Brown’s holiday albums, including her personal favorite song “Santa, Go Straight to the Ghetto.”

Also on the show, we’ve got chart news on Mariah Carey’s “All I Want for Christmas Is You” returning to No. 1 on the Billboard Hot 100 songs chart and producer Metro Boomin scoring his third No. 1 album on the Billboard 200 with the chart-topping debut of Heroes & Villains.

The Billboard Pop Shop Podcast is your one-stop shop for all things pop on Billboard‘s weekly charts. You can always count on a lively discussion about the latest pop news, fun chart stats and stories, new music, and guest interviews with music stars and folks from the world of pop. Casual pop fans and chart junkies can hear Billboard‘s executive digital director, West Coast, Katie Atkinson and Billboard’s senior director of charts Keith Caulfield every week on the podcast, which can be streamed on Billboard.com or downloaded in Apple Podcasts or your favorite podcast provider. (Click here to listen to the previous edition of the show on Billboard.com.)  

After 2022 saw SB19 drop their first English single “WYAT (Where You At)” and head out on their first international tour of the same name, the viral Filipino boy band is heading home and celebrating with a new single.

A winter ballad, “Nyebe” (which means “Snow” in Tagalog) sees the quintet showing a more reflective and emotional side than the feel-good throwback pop in “WYAT.” Their strong vocals are front and center in the moving rock-pop production, where they discuss substantial questions about happiness, worries and living in the moment. Like most of the P-pop band’s material, “Nyebe” was composed by leader Pablo, who also co-produced the song with Filipino singer-songwriter Thyro Alfaro who also has credits on past SB19 tracks like “Win Your Heart” and “Ready, Set, G!”

Pablo creatively directs the official visualizer for “Nyebe” which documents behind-the-scenes moments from SB19’s travels through their recent Where You At World Tour that visited New York, Los Angeles, San Francisco, Dubai and Singapore. Filmed in black-and-white, viewers see moments of the boys hanging around a fire pit and their visit to the Sony Music headquarters in NY, but also less upbeat visuals like what appears to be an unhoused person’s cardboard shelter or trash on the sidewalk. It all speaks to a message Pablo shared via press release alongside the single saying, “Time doesn’t stop, things around us happen so fast. At the end of the day…we just have to live with it and pray, there is always a ray of hope.”

SB19 confirmed they will perform “Nyebe” at their upcoming “WYAT Homecoming Concert” on Dec. 18 at the Araneta Coliseum arena in Quezon City, Philippines. Fans worldwide can buy tickets to tune in to a live stream of the concert and even upgrade to VIP to get access to watch Pablo, Stell, Justin, Ken and Josh’s soundcheck ahead of showtime.

Watch “Nyebe” below: