Epidemic Sound publishes its 2022 Annual Report and Sustainability Report
- The reports sum up 2022 and describe the company’s strategies for growth and sustainability
- Strong net sales growth of 46 percent, with improved operational efficiency, delivering positive EBITDA results for the first time in the company’s history
- Maintained a strong financial position, to fuel continued geographic and product expansion
- Several key recruitments concluded during the year
Stockholm, Sweden - 2022 was another strong year for Epidemic Sound, delivering a net sales growth of 46 (41) percent, amounting to SEK 1,181 (808) million. The year also demonstrated improved operational efficiency with an operating result (EBITDA) of SEK 3 (-53) million, corresponding to an operating margin of +0 (-7) percent.
Operationally, the year saw accelerated product development, further investments in high-quality music in a wide array of different genres, and as a result significantly stronger streaming revenues.
During the year, Epidemic Sound concluded the acquisition of one of the mood music market leaders, AP Records (now rebranded to Overtone Studios). Through the acquisition, the company strengthens its position within the mood music segment by boosting its capabilities to soundtrack people’s lives via music streaming platforms and by adding the opportunity to work with world-class artists.
Oscar Höglund, Co-founder and CEO of Epidemic Sound, comments: “The global demand for restriction-free music continues to develop strongly, despite a more demanding economic backdrop, and our 2022 full-year results is a strong proof point of that. The goal of Epidemic Sound is to facilitate both artists and customers to achieve creative and commercial success. Across 2022 we have therefore been working relentlessly to take away any friction that is standing in the way of that success, through improved software functionality and product features.”
As a result of the funding process concluded in 2021, and related internal transactions, the intangible assets increased in conjunction with the purchasing price allocation (PPA) that year. This, in combination with a broader and more diversified music catalog and a further evolved technical platform, resulted, as of the calendar year 2021, in a higher and a new normalized level of depreciation of intangible fixed assets.
Several key recruitments were concluded during the year including Jules Persaud, Chief Commercial Officer; Rikard Herlitz, Chief Technical Officer; and Lars Torstensson, Chief Communications & IR Officer.
Oscar Höglund continues: “Through our solid balance sheet, support of our shareholders and Board of Directors, together with several key recruitments, we have both the financial strength and the team in place to continue on our growth journey and scaling up of our business.”