Music App Suno Nearly Quadruples Annual Recurring Revenue to $150 Million

You can count the number of breakout consumer AI applications on the fingers of one hand. There’s OpenAI’s ChatGPT and…that’s about it, at least so far. 

Suno, which helps people create music using conversational prompts, isn’t yet a breakout—but it could be soon. The company is generating around $150 million in annual recurring revenue from subscriptions to its app, up nearly four times from a year ago, according to a person with knowledge of its financials. Only 20 other companies on our Generative AI Database have reached that point.

The company offers both free and paid tiers, where users can pay $10 or $30 per month to generate more songs. That implies that the company has at least five million subscribers, though the total number of free and paying users is likely much higher due to the cheaper and free tiers.

Perhaps even more impressive than Suno’s revenue growth is its margins. The company’s gross profit margins, even including its free tier, are similar to that of a software business, which typically stand at more than 60%, according to another person with knowledge of its financials.