Spotify-owned Irish start-up sees rise in accumulated losses

Soundwave Analytics

, the Irish start-up acquired by music streaming firm

Spotify

earlier this year, saw accumulated losses more than doubled last year.

Abridged accounts filed with the Companies Registration Office for the 12 months to the end of March 2015, show the firm’s losses rose by €949,096 from €920,093 in 2013 to €1.87 million last year.

Staff costs, including directors’ remuneration, totalled €627,973 as against €435,997 a year earlier. Over the 12 months under review the company took on an additional three employees to give it a total of 14 staff.

The company’s balance sheet as of March 31st, 2015, showed net liabilities of €1.85 million.

The Rathmines-based start-up was set up in 2012 by Brendan O'Driscoll, Aidan Sliney and Craig Watson. The firm's flagship app tracks what songs people are listening to on their smartphones and where in real time, allowing them to share their favourite tracks with friends without having to leave their chosen service.

The company was acquired by Spotify in January for an undisclosed sum. Its technology is to be integrated into the Swedish firm’s streaming service over time.

Soundwave's app service has many celebrity fans, including Apple co-founder Steve Wozniak and actor Stephen Fry, who helped launch the app when it hit the market in 2013. It has since been downloaded more than 1.5 million times in 190 countries. Among its many accolades were a Best Innovation in Music award by Apple in 2013. It was also previously named "Top Developer" by Google, while Forbes counted the start-up as one of five companies that made media consumption smarter.

Following its acquisition, the majority of Soundwave’s team is expected to relocate to Spotify’s offices in Stockholm and San Francisco.