Epidemic Sound publishes its 2021 Annual Report and Sustainability Report
- The reports sums up 2021 and describe the company’s strategies for growth and sustainability going forward
- Strong net sales growth of 41 percent, with improved operational efficiency
- New funding in place, creating a solid financial position to fuel continued investments and high sales growth
- Several key recruitments concluded during the year
Stockholm, Sweden – 2021 was another strong year for Epidemic Sound, delivering a net sales growth of 41 percent, amounting to SEK 808 (575†) million. The year also demonstrated improved operational efficiency with an operating result (EBITDA) of SEK -53 (-48†) million, corresponding to an operating margin of -7 (-8) percent.
Operationally, the year saw accelerated product development, further investments in high-quality music in a wide array of different genres, and several new and continued strategic partnerships such as Pinterest, TikTok and Canva, significantly improving the customer experience and product reach.
Oscar Höglund, Co-founder and CEO of Epidemic Sound, comments: “The global demand for restriction free music continues to accelerate, and our 2021 full year results is a strong proof point of that. The goal of Epidemic Sound is to facilitate both music creators and customers to achieve creative and commercial success. This can only be done in close collaboration with, and thanks to, the amazing team at Epidemic Sound and our partners. We now have a world-class music catalog and distribution network that is second to none!”
2021 also saw Epidemic Sound conclude a successful total funding round of USD 450 million, made up of both primary and secondary capital, inviting Blackstone Growth, EQT Growth, Alecta, AMF, and TIN Fonder to become shareholders in the company. As a result, the financial position of Epidemic Sound is very robust, allowing for continued investments into customer acquisition, core user experience, international expansion, localization, and its music catalog.
As a result of the funding process and related internal transactions, the intangible assets increased in conjunction with the purchasing price allocation (PPA) in 2021. This, in combination with a broader and more diversified music catalog and a further evolved technical platform, resulted in an expected increase in, and a new normalized level of depreciation of intangible fixed assets during the year.
Several key recruitments were concluded during the year including Sara Börsvik, Chief Financial Officer; Greg Funk, Chief Product Officer; and Christina Källenfors, General Counsel.
Oscar Höglund continues: “Through the successful funding round and support of our existing and new shareholders, together with several key recruitments, we have both the financial strength and the team in place to continue on our growth journey and mission to soundtrack the world.”
The annual report (in English) can be found here.
The annual report (In Swedish) can be found here.
The sustainability report (in English) can be found here.
† Referring to 2020 Epidemic Sound Holding AB