| 17 Apr 2024
Pandora forecast revenue for Q2 2015 somewhere between $280 million-$285 million

MUMBAI: Internet radio service, Pandora, has grown by 19 per cent year-over-year on a GAAP basis and 28 per cent on a non-GAAP basis in the first quarter of 2015 as compared to the same quarter last year. It registered total revenue of $230.8 million in Q1 2015. The company made $178.7 million through advertising and $52 million through subscription and other factors.

The service spent $126 million on content acquisition in Q1 2015, which is more than the $108.2 million it spent in Q1 2014. The total cost of revenue for Q1 2015 was $142.2 million, which compared to same quarter last year was $123.2 million. The company reported a gross profit of $88.5 million which is 21 per cent higher compared to the same quarter last year.

The operating loss is much higher compared to not just the corresponding quarter last year, but also to 12 month period that ended December 2014. In 2014, Pandora reported a total operating loss of $30.1 million, which was significantly lower than the operating loss for Q1 2015, which was $48.3million.

The company has seen a rise in its marketing and sales segment from $61.8 million in Q1 2014 to $84.2 million in Q1 2015.

Pandora’s investment in properties and equipment in Q1 2015 has reduced as the company has invested only $5.9 million, compared to Q1 2014 which stands at $11.8 million. Purchase investments have reduced from $115.5 million in Q1 2014 to $56.7 million in Q1 2015. Overall, net cash provided by (used in) investing activities has been reduced to $16.4 million in Q1 2015 from $93.4 in Q1 2014.

For Q1 2015, adjusted EBITDA was a loss of $20.9 million, a 7 per cent year-over-year improvement. The company forecasts adjusted EBITDA to range between $8 million and $13 million.

Meanwhile, the total listener hours for Pandora grew 11 per cent to 5.30 billion for the first quarter of 2015, compared to 4.80 billion for the same period last year. The company also stated that in the first quarter of 2015, it registered 79.2 million active users.

In Q2 2015, Pandora is expecting its revenue to grow somewhere between $280 million and $285 million. For the financial year 2015, revenue is expected to be in the range of $1.16 billion and $1.18 billion. Adjusted EBITDA is expected to be in the range of $75 million and $85 million. The company also stated that it “does not expect to pay significant cash income taxes for the foreseeable future due to its net operating loss position.”

Pandora chairman, president and CEO Brian McAndrews said, “We have been actively investing in every part of our business - from the music we play, to the ad technology and music maker products we offer. This quarter’s results are a reflection of those investments paying off.”

He further added, "In a time when listeners and brand partners have more choices than ever, listener hours grew, local advertisers increased their spending with us and we continued to advance our lead in digital audio by generating more demand and strong sell through."