- Pandora's (P) soaring sales/marketing spend (+95% Y/Y in FQ2 to $46M, well above rev. growth of 58%) likely has much to do with its mixed guidance. The company has been investing heavily in growing its local ad salesforce.
- On the other hand, improved monetization resulted in content acquisition cost growth (+35% Y/Y to $81.8M) being well below rev. growth, a change of pace from not too long ago.
- Pandora's mobile/connected device ad revenue per thousand listening hours (RPM) surged 46% Q/Q (aided by seasonality) and 53% Y/Y (no seasonality here) to $33.90. In addition, PC ad RPM +23% Q/Q and +4% Y/Y to $59.31.
- Total ad revenue +44% Y/Y to $128.5M. Subscription revenue +142% to $28.8M; the mobile listening cap may have lifted subscriber adds.
- Total mobile revenue +34% Q/Q and +92% Y/Y to $116M, and now 72% of revenue.
- FQ2 listener hours totaled 3.88B, +18% Y/Y but -7% Q/Q (listening cap played a role). The Street was aware of this decline thanks to Pandora's monthly data.
- FQ2 results, PR