Music Business

Pandora Stock Recovers Friday Morning Despite $343M Loss, Disppointing Forecast, No Listener Growth

Pandora-new-logo-image-001UPDATE 2: Pandora stock fell as much as 5% more in after hours trading Thursday, but recovered 4% Friday morning to an 11AM price of $3.11. Yesterday's drop came as the company reported that losses doubled from $169.7 million to $343 million,and offered a weak forecast. Pandora's total active listeners fell slightly from 81.1 million to 81 million in the quarter, while paid subscribers did tick up slightly.

__________________________________

Pandora_2016_logo wide

Pandora Q4 / FY16 Report To Investor Highlights

  • Fourth quarter revenue was expected to be in the range of $362 million to $374 million; adjusted EBITDA loss is expected to be in the range of $51 million to $39 million
  • Full year revenue was expected to be in the range of $1.354 billion to $1.366 billion; adjusted EBITDA loss is expected to be in the range of $140 million to $128 million

Pandora 

  • Q4 2016 total revenue was $392.6 million, growing 17% year-over-year; adjusted EBITDA was a loss of $30.4 million. Losses  
  • Full year 2016 total revenue was $1.385 billion, growing 19% year-over-year; adjusted EBITDA was a loss of $119.5 million

Advertising business highlights:

  • Q4 2016 Ad RPMs were $67.43, growing 18% year-over-year
  • Full year 2016 Ad RPMs were $55.94, growing 11% year-over-year 
  • Q4 2016 advertising revenue was $313.3 million, growing 16% year-over-year
  • Full year 2016 advertising revenue was $1.072 billion, growing 15% year-over-year

Ticketing business highlights:

  • Q4 2016 ticketing service revenue was $19.4 million, growing approximately 20% year-over-year
  • Full year 2016 ticketing service revenue was $86.6 million, growing approximately 25% year-over-year

Q4 user metrics:

  • Active listeners were 81 million (end of the fourth quarter of 2016), down from 81.1 million
  • Subscribers grew 12% to 4.39 million (end of the fourth quarter of 2016) compared to 3.93 million for the same period of the prior year

We will also share on the call that coming out of January, we saw continued growth in subs to 4.48 million

Q1 / FY17 Guidance:

  • Q1 revenue is expected to be in the range of $310 million to $320 million; adjusted EBITDA loss is expected to be in the range of $80 million to $70 million
  • FY17 revenue is expected to be in the range of $1.55 billion to $1.70 billion. At this time, we are not providing full year 2017 adjusted EBITDA guidance. Full year 2017 adjusted EBITDA perspectives and considerations will be discussed on the quarterly conference call.
Share on: