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 (2326) | Send Message
     
    ELIMINATING 40HR LISTENING CAP!
    22 Aug 2013, 05:19 PM Reply Like
  • dgulick
    , contributor
    Comments (2326) | Send Message
     
    IP bought from yahoo ($8M) to defend internet radio...
    22 Aug 2013, 05:21 PM Reply Like
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