Pandora Q2 Results Up 20%, Stock Rises After Liberty Media Offer
July 21, 2016 at 2:00 PM (PT)
PANDORA announced its Q2 2016 financial results today, with consolidated revenue at $343 million, representing a 20% year-over-year growth.
Excluding revenue from ticketing services, total revenue was $320.3 million, an increase of 12% year-over-year.
Advertising was up 15% to $265.1 million, while its ticketing service after acquiring TICKETFLY last OCTOBER, was $22.8 million, a growth of 20%. Subscription and other revenue was $55.1 million, a 1% year-over-year increase.
Total listener hours were up 7% to 5.66 billion, with user engagement reaching an all-time high of 24 hours per active user per month, compared to 5.3 billion last year.
Active listeners were 78.1 million at the end of the second quarter of 2016, compared to 79.4 million for the same period of the prior year.
Commented PANDORA founder/CEO TIM WESTERGREN. “We are making strong progress on PANDORA’s transformation into a complete music marketplace. We made considerable progress on our product development plans while also improving margins sequentially. PANDORA plans to deliver a powerfully differentiated music experience to accelerate growth and deliver value to listeners, music makers, advertisers and ultimately shareholders.”
GAAP net loss was $76.3 million compared to a net loss of $16.1 million in the same quarter last year, and adjusted EBITDA was a loss of $25.1 million, compared to a profit of $16.3 million in the same quarter last year. For the second quarter of 2016, adjusted EBITDA differs from GAAP net loss in that it excludes $32.4 million in expense from stock-based compensation, $14.4 million of depreciation and amortization expense, $6.0 million of other expense and $1.5 million of benefit from income taxes.
LIBERTY MEDIA CORP's recent bid to buy the company valued it at $3.4 billion, offering $15 a share, but PANDORA turned down the bid, believe its true value was closer to what it was valued at last FALL, when shares were going for $20. News of the interest sent PANDORA shares to $12.95, up 5%. Other potential buyers include APPLE and AMAZON, according to the WALL STREET JOURNAL.