Stronger Year-On-Year Trends in Advertising and Subscription
Businesses Drove Double Digit Revenue Growth
- Total Q2 Revenue was $384.8 million,
growing 12% year-over-year excluding Australia, New Zealand
& Ticketfly, exceeding top-end of guidance
- Q2 Subscription revenue was $113.7
million, growing 67% year-over-year excluding Australia, New
Zealand & Ticketfly
- Ad hour trends improved for the third
straight quarter
- Ad RPM hit an all-time Q2 high of
$68.75, growing 4% year-over-year
- Added 351 thousand to approximately 6
million subscribers; which grew 23% year-over-year
- Announced partnerships with AT&T,
Snap and Cheddar
- Completed the acquisition of AdsWizz
and launched Audio Programmatic
Pandora (NYSE: P) today announced financial results for the
second quarter ended June 30, 2018.
“We made continued progress against our strategy with total
revenue growing 12%, subscription revenue up 67% and ad hour trends
improving for the third straight quarter,” said Pandora CEO Roger
Lynch. “New partnerships with top brands like Snap and AT&T, as
well as enhancements to our ad tech and programmatic offerings,
position us to further accelerate growth and ownership of the
expanding digital audio marketplace.”
Second Quarter 2018 Financial Results &
Highlights
Revenue: For the second quarter of 2018, total
consolidated revenue was $384.8 million, an approximate 12%
year-over-year increase compared to the year-ago quarter, excluding
Australia, New Zealand and Ticketfly. This included $271.1 million
in advertising revenue and $113.7 million in subscription revenue.
We discontinued our service in Australia and New Zealand on July
31, 2017, and Ticketfly was sold to Eventbrite on September 1,
2017.
GAAP Net Loss and Adjusted EBITDA: For the second quarter
of 2018, GAAP net loss was $92.0 million or $0.38 per share. This
compared to a net loss of $275.1 million or $1.20 per share in the
same quarter last year. Net loss included an unforecasted non-cash
charge of $14.6 million related to the convertible debt exchange, a
$7.2 million tax benefit for the release of a valuation allowance
associated with the Adswizz acquisition and additional expense
relating to restructuring and the AdsWizz transaction fees, all of
which impacted net income by approximately $10.5 million, or $0.04
per share.
Our non-GAAP net loss was $38.9 million, or $0.15 per share.
This compared to $50.1 million net loss or $0.21 in the year ago
quarter. Adjusted EBITDA was a loss of $34.6 million, compared to a
loss of $54.3 million in the same quarter last year.
Cash and Investments: For the second quarter of 2018, the
Company ended with $420.8 million in cash and investments, compared
to $544.4 million at the end of the prior quarter. This included
$66.9 million use of cash for the AdsWizz acquisition, net of cash
acquired.
Strategic Announcement: Pandora closed the acquisition of
Adswizz on May 25, 2018. Final consideration was $146.6 million,
comprised of $73.7 million in cash and 9.6 million shares.
Additionally, Pandora announced the general availability of
audio programmatic, Pandora’s first product integration with
AdsWizz, which will allow Pandora to access additional demand,
optimize pricing and increase efficiency of the company’s ad
operations.
Product Launches: Pandora launched its Premium Family
Plan that provides all the benefits of ad-free, on-demand music
with Premium, for up to six people under one billing account for
just $14.99 a month.
Listener Hours: Total listener hours were 5.09 billion
for the second quarter of 2018, compared to 5.22 billion for the
same period of the prior year.
Active Users: Active users were 71.4 million at the end
of the second quarter of 2018.
Subscribers: Pandora Plus and Pandora Premium subscribers
were approximately 6 million at the end of the second quarter of
2018.
Other Information
Guidance: Guidance will be discussed during the second
quarter 2018 conference call.
Second Quarter 2018 Financial Results Conference Call:
Pandora will host a conference call today at 2 p.m. PT/5 p.m. ET to
discuss second quarter 2018 financial results with the investment
community. A live webcast of the event will be available on the
Pandora Investor Relations website at http://investor.pandora.com.
A live domestic dial-in is available at (877) 355-0067 or (614)
999-7532 internationally. A domestic replay will be available at
(855) 859-2056 or (404) 537-3406 internationally, using passcode
7592268, and available via webcast replay until August 14,
2018.
ABOUT PANDORA
Pandora is the world’s most powerful music discovery platform—a
place where artists find their fans and listeners find music they
love. We are driven by a single purpose: unleashing the infinite
power of music by connecting artists and fans, whether through
earbuds, car speakers, or anywhere fans want to experience it. Our
team of highly trained musicologists analyze hundreds of attributes
for each recording which powers our proprietary Music Genome
Project®, delivering billions of hours of personalized music
tailored to the tastes of each music listener, full of discovery,
making artist/fan connections at unprecedented scale. Founded by
musicians, Pandora empowers artists with valuable data and tools to
help grow their careers and connect with their fans.
www.pandora.com | @pandoramusic | www.pandoraforbrands.com |
@PandoraBrands | amp.pandora.com
"Safe harbor" Statement: This press release contains
forward-looking statements within the meaning established by the
Private Securities Litigation Reform Act of 1995, including, but
not limited to, statements regarding expected revenue and adjusted
EBITDA, and the benefits to Pandora from the acquisition of
AdsWizz. These forward-looking statements are based on Pandora's
current assumptions, expectations and beliefs and involve
substantial risks and uncertainties that may cause results,
performance or achievement to materially differ from those
expressed or implied by these forward-looking statements. Factors
that could cause or contribute to such differences include, but are
not limited to: our operation in an emerging market and our
relatively new and evolving business model; our ability to estimate
revenue reserves; our ability to increase our listener base and
listener hours; our ability to attract and retain advertisers; our
ability to generate additional revenue on a cost-effective basis;
competitive factors; our ability to continue operating under
existing laws and licensing regimes; our ability to enter into and
maintain commercially viable direct licenses with record labels for
the right to reproduce and publicly perform sound recordings on our
service; our ability to establish and maintain relationships with
makers of mobile devices, consumer electronic products and
automobiles; our ability to manage our growth and geographic
expansion; our ability to continue to innovate and keep pace with
changes in technology and our competitors; our ability to expand
our operations to delivery of non-music content; our ability to
protect our intellectual property; risks related to service
interruptions or security breaches; and general economic conditions
worldwide. Further information on these factors and other risks
that may affect the business are included in filings with the
Securities and Exchange Commission (SEC) from time to time,
including under the heading “Risk Factors” in our most recent
reports on Form 10-K and Form 10-Q.
The financial information contained in this press release should
be read in conjunction with the consolidated financial statements
and notes thereto included in our most recent reports on Form 10-K
and Form 10-Q, each as they may be amended from time to time. Our
results of operations for the current period are not necessarily
indicative of our operating results for any future periods.
These documents are available online from the SEC or on the SEC
Filings section of the Investor Relations section of our website at
investor.pandora.com. Information on our website is not part of
this release. All forward-looking statements in this press release
are based on information currently available to the Company, which
assumes no obligation to update these forward-looking statements in
light of new information or future events.
Non-GAAP Financial Measures: To supplement our condensed
consolidated financial statements, which are prepared and presented
in accordance with accounting principles generally accepted in the
United States ("GAAP"), the Company uses the following non-GAAP
measures of financial performance: non-GAAP gross profit, non-GAAP
net loss, non-GAAP basic and diluted net loss per common share,
adjusted EBITDA, non-GAAP product development, non-GAAP sales and
marketing and non-GAAP general and administrative. The presentation
of this additional financial information is not intended to be
considered in isolation from, as a substitute for, or superior to,
the financial information prepared and presented in accordance with
GAAP. These non-GAAP measures have limitations in that they do not
reflect all of the amounts associated with our results of
operations as determined in accordance with GAAP. In addition,
these non-GAAP financial measures may be different from the
non-GAAP financial measures used by other companies. These non-GAAP
measures should only be used to evaluate our results of operations
in conjunction with the corresponding GAAP measures. Management
compensates for these limitations by reconciling these non-GAAP
financial measures to the most comparable GAAP financial measures
within our earnings releases.
Non-GAAP gross profit, non-GAAP net loss, non-GAAP basic and
diluted net loss per common share, non-GAAP product development,
non-GAAP sales and marketing and non-GAAP general and
administrative differ from GAAP in that they exclude stock-based
compensation expense, intangible amortization expense, amortization
of non-recoupable ticketing contract advances, expense associated
with the restructurings, transaction costs, loss on sales of
subsidiaries and loss on extinguishment of convertible debt. The
income tax effects of non-GAAP pre-tax loss have been reflected in
non-GAAP net loss and non-GAAP basic and diluted net loss per
common share.
Adjusted EBITDA: Adjusted EBITDA excludes stock-based
compensation expense, provision for income taxes, depreciation and
intangible amortization expense, amortization of non-recoupable
ticketing contract advances, other expense, expense associated with
the restructurings, transaction costs and loss on sales of
subsidiaries.
Stock-based Compensation Expense: consists of expenses
for stock options, restricted stock units and other awards under
our equity incentive plans. Stock-based compensation is included in
the following cost and expense line items of our GAAP presentation:
cost of revenue—other, cost of revenue—ticketing service, product
development, sales and marketing and general and
administrative.
Although stock-based compensation is an expense for the Company
and is viewed as a form of compensation, management excludes
stock-based compensation from our non-GAAP measures and adjusted
EBITDA results for purposes of evaluating our continuing operating
performance primarily because it is a non-cash expense not believed
by management to be reflective of our core business, ongoing
operating results or future outlook. In addition, the value of
stock-based instruments is determined using formulas that
incorporate variables, such as market volatility, that are beyond
our control.
Provision for Income Taxes: consists of expense
recognized related to U.S. and foreign income taxes. The Company
considers its adjusted EBITDA results without these charges when
evaluating its ongoing performance because it is not believed by
management to be reflective of our core business, ongoing operating
results or future outlook.
Depreciation and Intangible Amortization Expense:
consists of non-cash charges that can be affected by the timing and
magnitude of business combinations and asset purchases.
Depreciation and intangible amortization expense is included in the
following cost and expense line items of our GAAP presentation:
cost of revenue—other, cost of revenue—ticketing service, product
development, sales and marketing and general and administrative.
Depreciation and intangible amortization expense also consists of
non-cash amortization of non-recoupable amounts paid in advance to
the Company’s clients pursuant to ticketing agreements.
Amortization of non-recoupable ticketing contract advances is
included in the sales and marketing line of our GAAP presentation.
Management considers its operating results without intangible
amortization expense and amortization of non-recoupable ticketing
contract advances when evaluating its ongoing non-GAAP performance
and without depreciation, intangible amortization expense and
amortization of non-recoupable ticketing contract advances when
evaluating its ongoing adjusted EBITDA performance because these
charges are non-cash expenses that can be affected by the timing
and magnitude of business combinations, asset purchases and new
client agreements and may not be reflective of our core business,
ongoing operating results or future outlook.
Other Expense: consists primarily of interest expense
related to our Convertible Senior Notes and our Credit
Facility. The Company considers its adjusted EBITDA results without
these charges when evaluating its ongoing performance because it is
not believed by management to be reflective of our core business,
ongoing operating results or future outlook.
Expense Associated with the Restructurings: consists of
employee-related expense recognized in connection with the
workforce reductions in the first quarters of 2018 and 2017 and the
restructuring in Australia and New Zealand. These costs are
included in the following cost and expense line items of our GAAP
presentation: cost of revenue—other, product development, sales and
marketing and general and administrative. This also consists of
professional fees recognized in connection with the reorganization
of the Company in the first quarters of 2017 and 2018, which are
included in the general and administrative line item of our GAAP
presentation. The Company considers its non-GAAP and adjusted
EBITDA results without these charges when evaluating its ongoing
performance because these charges are not believed by management to
be reflective of our core business, ongoing operating results or
future outlook.
Transaction Costs: consists of professional and legal
fees recognized during the period, primarily related to the AdsWizz
acquisition. These costs are included in the general and
administrative line item of our GAAP presentation. The Company
considers its non-GAAP and adjusted EBITDA results without these
charges when evaluating its ongoing performance because these
charges are not believed by management to be reflective of our core
business, ongoing operating results or future outlook.
Loss on Sales of Subsidiaries: consists of loss on sales
of subsidiaries recognized during the period, primarily related to
the Ticketfly disposition, including the cancellation of the
convertible promissory note receivable. These amounts were
calculated as the decrease in the fair value less costs to sell for
sales of our subsidiaries and were recorded as loss on sales during
the period. The Company considers its operating results without
these charges when evaluating its ongoing non-GAAP and adjusted
EBITDA results because these charges are not believed by management
to be reflective of our core business, ongoing operating results or
future outlook.
Loss on Extinguishment of Convertible Debt: consists of
loss on extinguishment of convertible debt recognized during the
period. This amount were calculated as the difference in the fair
value and carrying value of the convertible debt immediately prior
to extinguishment and was recorded as loss on extinguishment of
convertible debt during the period. The Company considers its
operating results without these charges when evaluating its ongoing
non-GAAP and adjusted EBITDA results because these charges are not
believed by management to be reflective of our core business,
ongoing operating results or future outlook.
Income Tax Effects of Non-GAAP Pre-tax Loss: The Company
adjusts non-GAAP pre-tax net loss by considering the income tax
effects of its non-GAAP adjustments. The Company is currently
forecasting a non-GAAP effective tax rate of approximately 22% to
25% cumulatively for each quarter and the full year 2018. However,
the Company is not expected to incur any material cash taxes due to
its net operating loss position.
Management believes these non-GAAP financial measures and
adjusted EBITDA serve as useful metrics for our management and
investors because they enable a better understanding of the
long-term performance of our core business and facilitate
comparisons of our operating results over multiple periods and to
those of peer companies, and when taken together with the
corresponding GAAP financial measures and our reconciliations,
enhance investors' overall understanding of our current financial
performance.
In the financial tables below, the Company provides a
reconciliation of the most comparable GAAP financial measure to the
historical non-GAAP financial measures used in this earnings
release.
Pandora Media, Inc.
Condensed Consolidated Statements of
Operations
(in thousands, except per share
amounts)
(unaudited)
Three months ended June 30, Six months
ended June 30, 2017 (1 )
2018 (1 ) 2017 (1 )
2018 (1 ) Revenue Advertising $ 278,204
$ 271,056 $ 501,512 $ 485,624 Subscription and other 68,900 113,738
133,778 218,403 Ticketing service 29,730 —
57,548 — Total revenue
376,834 384,794 692,838
704,027 Cost of revenue Cost of revenue—Content acquisition
costs 195,875 226,860 383,295 444,440 Cost of revenue—Other (2)
27,440 32,727 52,972 59,576 Cost of revenue—Ticketing service (2)
20,510 — 39,128 —
Total cost of revenue 243,825 259,587
475,395 504,016 Gross profit
133,009 125,207 217,443 200,011 Gross margin 35 % 33 % 31 % 28 %
Operating expenses Product development (2) 41,233 40,351 80,821
76,235 Sales and marketing (2) 145,891 125,375 270,993 249,591
General and administrative (2) 57,954 53,617 102,479 95,248
Goodwill impairment 131,997 — 131,997 — Contract termination fees
23,467 — 23,467 —
Total operating expenses 400,542
219,343 609,757 421,074 Loss
from operations (267,533 ) (94,136 ) (392,314 ) (221,063 ) Interest
expense (7,404 ) (6,745 ) (14,785 ) (14,031 ) Other income, net
78 1,767 307 4,349
Total other expense, net (7,326 ) (4,978 )
(14,478 ) (9,682 ) Loss before provision for income
taxes (274,859 ) (99,114 ) (406,792 ) (230,745 ) Provision for
income taxes (277 ) 7,132 (611 )
7,058 Net loss (275,136 ) (91,982 )
(407,403 ) (223,687 ) Net loss available to common
stockholders $ (289,664 ) $ (99,455 ) $ (421,931 ) $ (238,523 )
Basic and diluted net loss per common share $ (1.20 ) $ (0.38 ) $
(1.76 ) $ (0.93 ) Weighted-average basic and diluted common shares
241,320 259,822 239,428
256,397
(1) Includes results for Australia,
New Zealand and Ticketfly, where applicable
(2) Includes stock-based
compensation expense as follows:
Three months ended June
30,
Six months ended June
30,
2017
2018
2017
2018
Cost of revenue—Other
$
814
$
800
$
1,629
$
1,542
Cost of revenue—Ticketing service
34
—
63
—
Product development
9,422
8,028
17,337
14,445
Sales and marketing
15,102
11,092
28,598
22,909
General and administrative
13,236
7,608
20,599
15,068
Total stock-based compensation expense
$
38,608
$
27,528
$
68,226
$
53,964
Pandora Media, Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
As of December 31, As of June 30, 2017
2018 (audited) (unaudited) Assets Current
assets Cash and cash equivalents $ 499,597 $ 292,996 Short-term
investments 1,250 127,791 Accounts receivable, net 336,429 339,592
Prepaid content acquisition costs 55,668 24,379 Prepaid expenses
and other current assets 19,220 21,799 Total current
assets 912,164 806,557 Convertible promissory note receivable
35,471 — Property and equipment, net 116,742 110,583 Goodwill
71,243 178,917 Intangible assets, net 19,409 59,863 Other long-term
assets 11,293 12,023 Total assets $ 1,166,322
$ 1,167,943 Liabilities, redeemable convertible preferred
stock and stockholders’ equity Current liabilities Accounts payable
$ 14,896 $ 17,704 Accrued liabilities 34,535 60,047 Accrued content
acquisition costs 97,751 125,791 Accrued compensation 47,635 48,184
Deferred revenue 31,464 43,512 Total current
liabilities 226,281 295,238 Long-term debt, net 273,014 250,267
Other long-term liabilities 23,500 25,919 Total
liabilities 522,795 571,424 Redeemable convertible
preferred stock 490,849 505,684 Stockholders’ equity Common stock
25 27 Additional paid-in capital 1,422,221 1,598,905 Accumulated
deficit (1,269,351 ) (1,507,874 ) Accumulated other comprehensive
loss (217 ) (223 ) Total stockholders’ equity 152,678 90,835
Total liabilities, redeemable convertible preferred stock
and stockholders’ equity $ 1,166,322 $ 1,167,943
Pandora Media, Inc.
Condensed Consolidated Statements of
Cash Flows
(in thousands) (unaudited)
Three months ended June 30, Six months
ended June 30, 2017 2018
2017 2018 Operating activities Net loss $
(275,136 ) $ (91,982 ) $ (407,403 ) $ (223,687 ) Adjustments to
reconcile net loss to net cash used in operating activities Loss on
dispositions — — — 2,173 Goodwill impairment 131,997 — 131,997 —
Loss on extinguishment of convertible debt — 14,600 — 14,600
Depreciation and amortization 17,435 14,283 35,115 28,062
Stock-based compensation 38,608 27,528 68,226 53,964 Amortization
of premium on investments, net 20 (552 ) 73 (670 ) Accretion of
discount on convertible promissory note receivable — — — (534 )
Other operating activities (179 ) 166 186 231 Amortization of debt
discount 4,913 5,022 9,799 10,418 Interest income — — — (810 )
Provision for bad debt 7,884 1,831 9,274 1,516 Changes in operating
assets and liabilities Accounts receivable (32,347 ) (51,049 )
12,594 16,111 Prepaid content acquisition costs 8,673 11,522 6,441
31,289 Prepaid expenses and other assets (3,567 ) 242 (9,146 )
(1,346 ) Accounts payable, accrued and other current liabilities
1,880 (1,148 ) 15,072 3,601 Accrued content acquisition costs
(1,713 ) 19,537 (5,475 ) 28,040 Accrued compensation 16 2,517
(13,191 ) 1,170 Other long-term liabilities 420 (8,241 ) 176 (9,027
) Deferred revenue 120 5,830 4,116 12,047 Reimbursement of cost of
leasehold improvements — 537 5,236 894
Net cash used in operating activities (100,976 ) (49,357 ) (136,910
) (31,958 ) Investing activities Purchases of property and
equipment (6,561 ) (1,580 ) (8,541 ) (4,990 ) Internal-use software
costs (3,129 ) (5,089 ) (10,894 ) (10,578 ) Payments related to
acquisition, net of cash acquired — (66,924 ) — (66,924 ) Purchases
of investments — (75,245 ) — (164,586 ) Proceeds from maturities of
investments 14,054 37,500 25,274 38,750 Proceeds from cancellation
of convertible promissory note receivable — — —
34,742 Net cash provided by (used in) investing
activities 4,364 (111,338 ) 5,839 (173,586 )
Financing activities Proceeds from issuance of redeemable
convertible preferred stock 172,500 — 172,500 — Payments of
issuance costs (12,625 ) (4,516 ) (12,625 ) (4,516 ) Proceeds from
employee stock purchase plan 3,348 2,237 6,146 2,274 Proceeds from
exercise of stock options 750 175 3,138 423 Tax withholdings
related to net share settlements of restricted stock units —
(190 ) — (477 ) Net cash provided by (used in) financing
activities 163,973 (2,294 ) 169,159 (2,296 ) Effect
of exchange rate changes on cash, cash equivalents and restricted
cash 82 (10 ) 292 (18 ) Net increase (decrease) in
cash, cash equivalents and restricted cash 67,443 (162,999 )
38,380 (207,858 ) Less: Cash held for sale (28,101 ) —
(28,101 ) — Cash, cash equivalents and restricted cash at beginning
of period 172,757 455,995 201,820 500,854
Cash, cash equivalents and restricted cash at end of period
$ 212,099 $ 292,996 $ 212,099 $ 292,996
Pandora Media, Inc.
Condensed Consolidated Statements of
Cash Flows continued
(in thousands) (unaudited)
Three months ended June 30, Six months
ended June 30, 2017 2018
2017 2018 Reconciliation of cash, cash
equivalents and restricted cash as shown in the statements of cash
flows Cash and cash equivalents $ 209,581 $ 292,996 $ 209,581 $
292,996 Restricted cash included in other long-term assets line
item of Condensed Consolidated Balance Sheets 2,518 —
2,518 — Total cash, cash equivalents and restricted cash $
212,099 $ 292,996 $ 212,099 $ 292,996
Pandora Media, Inc.
Reconciliation of GAAP to Non-GAAP
Measures
(in thousands, except per share
amounts)
(unaudited)
Three months ended June 30, Six months
ended June 30, 2017 2018
2017 2018 Gross profit GAAP gross profit $
133,009 $ 125,207 $ 217,443 $ 200,011 Stock-based compensation—Cost
of revenue 848 800 1,692 1,542 Amortization of intangibles—Cost of
revenue 2,514 1,951 3,933 3,106 Expense associated with the
restructurings 78 — 390 — Non-GAAP
gross profit $ 136,449 $ 127,958 $ 223,458 $
204,659 Non-GAAP gross margin 36 % 33 % 32 % 29 %
Adjusted EBITDA and non-GAAP net loss GAAP net loss $ (275,136 ) $
(91,982 ) $ (407,403 ) $ (223,687 ) Depreciation and amortization
17,435 14,283 35,115 28,062 Stock-based compensation 38,608 27,528
68,226 53,964 Other expense, net 7,326 4,978 14,478 9,682 Provision
for income taxes 277 (7,132 ) 611 (7,058 ) Expense associated with
the restructurings 1,733 1,379 7,913 10,247 Transaction costs —
1,700 — 4,059 Goodwill impairment 131,997 — 131,997 —
Loss on extinguishment of convertible
debt
— 14,600 — 14,600 Loss on sale of subsidiaries — — — 2,173 Contract
termination fees 23,467 — 23,467 —
Adjusted EBITDA $ (54,293 ) $ (34,646 ) $ (125,596 ) $ (107,958 )
Income tax effects of non-GAAP pre-tax loss 23,596 5,247 55,754
26,997 Other expense, net (7,326 ) (4,978 ) (14,478 ) (9,682 )
Provision for income taxes (277 ) $ 7,132 $ (611 ) $ 7,058
Depreciation (11,821 ) (11,655 ) (22,378 ) (23,916 ) Non-GAAP net
loss $ (50,121 ) $ (38,900 ) $ (107,309 ) $ (107,501 )
Non-GAAP net loss per common share - basic and diluted (0.21 )
(0.15 ) (0.45 ) (0.42 ) Weighted average basic and diluted common
shares 241,320 259,822 239,428 256,397
Pandora Media, Inc.
Reconciliation of GAAP to Non-GAAP
Measures continued
(in thousands, except per share
amounts)
(unaudited)
Three months ended June 30, Six months
ended June 30, 2017 2018
2017 2018 Product development GAAP product
development $ 41,233 $ 40,351 $ 80,821 $ 76,235 Stock-based
compensation (9,422 ) (8,028 ) (17,337 ) (14,445 ) Amortization of
intangibles (254 ) (97 ) (2,076 ) (194 ) Expense associated with
the restructurings (8 ) — (710 ) (622 ) Non-GAAP
product development $ 31,549 $ 32,226 $ 60,698
$ 60,974 Sales and marketing GAAP sales and
marketing $ 145,891 $ 125,375 $ 270,993 $ 249,591 Stock-based
compensation (15,102 ) (11,092 ) (28,598 ) (22,909 ) Amortization
of intangibles (1,170 ) (397 ) (2,883 ) (480 ) Amortization of
non-recoupable ticketing contract advances (1,493 ) — (3,479 ) —
Loss on sale of subsidiaries — — — (100 ) Expense associated with
the restructurings (1,551 ) — (5,207 ) (4,608 ) Non-GAAP
sales and marketing $ 126,575 $ 113,886 $ 230,826
$ 221,494 General and administrative GAAP
general and administrative $ 57,954 $ 53,617 $ 102,479 $ 95,248
Stock-based compensation (13,236 ) (7,608 ) (20,599 ) (15,068 )
Amortization of intangibles (183 ) (183 ) (366 ) (366 ) Transaction
costs — (1,700 ) — (4,059 )
Loss on extinguishment of convertible
debt
— (14,600 ) — (14,600 ) Loss on sale of subsidiaries — — — (2,073 )
Expense associated with the restructurings (96 ) (1,379 ) (1,606 )
(5,017 ) Non-GAAP general and administrative $ 44,439 $
28,147 $ 79,908 $ 54,065
Pandora Media, Inc.
Ad RPM and LPM History
(unaudited)
Three months ended June 30, Six months ended June
30, 2017 2018 2017
2018 Advertising RPM $ 66.15 $ 68.75 $ 58.34 $ 62.15
Advertising LPM $ 35.84 $ 36.87 $ 34.61 $ 36.61
Pandora Media, Inc.
Subscription ARPU and LPU
History
(unaudited)
Three months ended June 30, Six months ended June
30, 2017 2018 2017
2018 Subscription ARPU $ 4.82 $ 6.52 $ 4.79 $ 6.41
Subscription LPU $ 3.11 $ 4.78 $ 3.03 $ 4.72
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180731005898/en/
PandoraDerrick Nueman / Conrad Grodd, 510-842-6960Investor
Relationsinvestor@pandora.comorPandora Corporate
CommunicationsJette Speights, 510-858-3865press@pandora.com
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Pandora (NYSE:P)
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From Apr 2023 to Apr 2024