The company said in a statement they also saw 'solid growth' in 2016 and expect that to continue this year.
The losses were accompanied by a rise in revenue of 21.6% to €21.1m—far lower than a rise of 30.9% in net losses. The number of employees also grew by 25% to 295 people, with an average salary of €90,729.
In the Director's report, co-founder Alexander Ljung explained that if SoundCloud's new subscription service doesn't succeed, it may need to raise additional funds. "Whilst the directors believe that [SoundCloud] will have sufficient funds to continue to meet its liabilities through 31 December 2017," Ljung writes, "the risks and uncertainties may cause the company to run out of cash earlier than that date, and would require [SoundCloud] to raise additional funds which are not currently planned."
News of the losses comes shortly after it was revealed that Google is considering buying SoundCloud.
In a statement from a spokesperson, SoundCloud noted that in 2015 the company was "heavily focused on putting the necessary measures in place to build out our monetization model," which "meant investing in technology, people and marketing, as well as securing complex licensing agreements with key music industry partners. As such, the company remained unprofitable."
They also noted "solid growth" in 2016 and that they expected that to continue for 2017.
"We are on a very positive path to achieving our aim of enabling all creators to be paid for their work," they said, "while also building a financially sustainable platform where our connected community of creators, listeners and curators can continue to thrive."