OAKLAND, Calif.- Pandora (NYSE: P) today announced financial results for the second quarter ended June 30, 2017.
“We remain laser-focused on execution that attracts listeners and investments that drive the growth and monetization of our audience.”
Tweet thisWe have taken a number of steps to hone the company’s strategy and position Pandora to continue to build audience and extend monetization through a combination of advertising and subscription revenue streams. In addition to exceeding our revenue expectations this quarter, we also announced several important strategic moves including a $480 million investment from Sirius XM, the sale of Ticketfly, and changes to our board and management team,” said Naveen Chopra, CFO and interim CEO of Pandora. “We remain laser-focused on execution that attracts listeners and investments that drive the growth and monetization of our audience.
Second Quarter 2017 Financial Results
Revenue: For the second quarter of 2017, total consolidated revenue was $376.8 million, a 10% year-over-year increase.
Advertising Products: Advertising revenue was $278.2 million, a 5% year-over-year increase. Advertising growth was enabled by improvements in effective CPMs coupled with higher ad-loads relative to the year-ago period.
Subscriptions: Total paid subscribers increased from 3.93 million in Q2 2016 to 4.86 million in Q2 2017, growing approximately 24% year-over-year. Subscription and other revenue was $68.9 million, a 25% year-over-year increase.
Ticketing: Ticketing service revenue was $29.7 million, a 31% year-over-year increase.
GAAP Net Loss and Adjusted EBITDA: For the second quarter of 2017, GAAP net loss was $275.1 million compared to a net loss of $76.3 million in the same quarter last year, including a goodwill impairment charge to reflect a one-time write down related to the net assets of Ticketfly and other one-time expenses related to the financing transaction. Adjusted EBITDA was a loss of $54.3 million, compared to a loss of $25.1 million in the same quarter last year. For the second quarter of 2017, adjusted EBITDA differs from GAAP net loss in that it excludes $132.0 million of goodwill impairment, $38.6 million in expense from stock-based compensation, $23.5 million in contract termination fees, $17.4 million of depreciation and amortization expense, $7.3 million of other expense, $1.7 million in expense associated with the restructurings and $0.3 million of provision for income taxes.
Cash and Investments: For the first quarter of 2017, the Company ended with $227.6 million in cash and investments, compared to $203.0 million at the end of the prior quarter.
Other Business Metrics
Listener Hours: Listener hours were actively managed this quarter to optimize profitability in our ad-supported service. Total listener hours were 5.22 billion for the second quarter of 2017, compared to 5.66 billion for the same period of the prior year.
Active Listeners: Active listeners were 76.0 million at the end of the second quarter of 2017.
Guidance: Guidance will be discussed during the Q2 conference call to allow for the full discussion of the Q3 and full year effect of the anticipated divestiture of Ticketfly and the discontinuation of Pandora operations in Australia and New Zealand.
Second Quarter Financial Results Conference Call: Pandora will host a conference call today at 2 p.m. PT/5 p.m. ET to discuss second quarter 2017 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 internationally at (614) 999-7532. A domestic replay will be available at (855) 859-2056 or internationally at (404) 537-3406, using passcode 54267282, and available via webcast until August 31, 2017.
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, live on stage 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.