Seeking Alpha

Pandora now -5% AH; mobile revenue jumps, and so does spending

  • 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

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Comments (2)
  • dgulick
    , contributor
    Comments (1749) | Send Message
     
    ELIMINATING 40HR LISTENING CAP!
    22 Aug 2013, 05:19 PM Reply Like
  • dgulick
    , contributor
    Comments (1749) | Send Message
     
    IP bought from yahoo ($8M) to defend internet radio...
    22 Aug 2013, 05:21 PM Reply Like
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