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Pandora's (P) mobile ad sales may be growing quickly, but they come with some tradeoffs. The...

Pandora's (P) mobile ad sales may be growing quickly, but they come with some tradeoffs. The Internet radio leader disclosed in its 10-Q today that its average price/ad fell 27% Y/Y in FQ4 due to a mix shift towards mobile ads. At the same time, Pandora's sales force grew by 80%, as the company both ramps its mobile business and increasingly targets local advertisers.
Comments (1)
  • One can shumber numbers whole day.. But take a look at the results.

     

    Just compare Q1 to Q2 of 2012. I am going from memory here but you can check the following number.. Revenue increased roughly $20M.. Of which $6M went to increased content acquisition cost and $14M went straight to bottomline.. And I did not hear more than 4 ads in an hour of Pandora listening on my iPhone -

     

    So summary... Tremendous leverage with no real deterioration in user experience due to ads... What more can you ask for?

     

    Btw, while reading 10Q, did you read that CEO Kennedy is now awarded options that requires stock price to reach $21? Just think about the level of confidence CEO must have to sign such a deal!
    4 Sep 2012, 10:56 PM Reply Like
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