Editing SoundCloud (section)

===Recovery and Profitability (2018–2024)===
In 2021, SoundCloud overhauled its royalty distribution model. Under the new model, royalties are awarded on the basis of subscription and advertising revenue, as opposed to the number of streams.  This fan-powered royalty system was widely praised as a fairer and more transparent approach to compensating independent artists.

In 2022, SoundCloud had to let go of 20 percent of its employees worldwide to cope with the economic consequences of the COVID-19 pandemic. In May 2023, a further 8 percent of full-time positions were cut in order to meet the owners' profit targets. 

SoundCloud achieved positive EBITDA in 2024, marking its first sustained period of profitability. The two main shareholders approached investment banks in early 2024 to prepare a possible sale of SoundCloud, with the Berlin-based company valued at approximately EUR 1 billion.