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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): May 3, 2018
  
Pandora Media, Inc.
(Exact name of registrant as specified in its charter) 
Delaware
 
001-35198
 
94-3352630
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
2101 Webster Street, Suite 1650
Oakland, CA 94612
(Address of principal executive offices, including zip code)
 
(510) 451-4100
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company                     o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   o


 





Item 2.02                   Results of Operations and Financial Condition.
 
On May 3, 2018, Pandora Media, Inc. (the "Company") issued a press release announcing its financial results for the three month period ended March 31, 2018. A copy of the press release is furnished as Exhibit 99.1 to this current report and is incorporated herein by reference.
 
The information furnished on this Form 8-K, including the exhibit attached, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item  9.01                 Financial Statements and Exhibits.
 
(d)                 Exhibits.

Exhibit
No.
 
Exhibit Description
 
 
 
99.1

 
Press Release dated May 3, 2018






SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
 
 
PANDORA MEDIA, INC.
 
 
 
 
Dated: May 3, 2018
 
By:
/s/ Naveen Chopra
 
 
 
Naveen Chopra
Chief Financial Officer







EXHIBIT INDEX
 
Exhibit
No.
 
Exhibit Description
 
 
 
 



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


Exhibit 99.1
 393330288_pandoralogoa17.jpg

PANDORA REPORTS Q1 2018 FINANCIAL RESULTS
Year-Over-Year Revenue Growth Accelerated in Q1


Q1 Revenue was $319.2 million, growing 12% year-over-year excluding ANZ & Ticketfly     
Q1 Subscription revenue was $104.7 million, growing 63% year-over-year excluding ANZ & Ticketfly
Ad RPM hit an all-time Q1 high of $55.52, growing 9% year-over-year 
Total subscribers were 5.63 million, growing 19% year-over-year
Q1 Revenue and Adjusted EBITDA significantly exceeded our forecast
Announced acquisition of AdsWizz, creating the largest digital audio advertising ecosystem globally

OAKLAND, Calif. - May 3, 2018 - Pandora (NYSE: P) today announced financial results for the first quarter ended March 31, 2018.

“Music streaming and digital audio continue to see massive growth, and this quarter we took key steps to position Pandora to capture this significant opportunity,” said Roger Lynch, CEO of Pandora. “We improved audience metrics—in part by increasing usage of Premium Access, which gives ad-supported listeners the ability to enjoy Pandora Premium after viewing a 15-second ad. We also accelerated our ad-tech roadmap with the acquisition of AdsWizz, and launched exciting new product features like personalized playlists. Looking ahead, Pandora is exactly where we want to be: at the center of a growing market with huge potential.”

First Quarter 2018 Financial Results & Highlights

Revenue: For the first quarter of 2018, total consolidated revenue was $319.2 million, an approximate 12% year-over-year increase compared to the year-ago quarter, excluding Australia, New Zealand and Ticketfly. This included $214.6 million in advertising revenue and $104.7 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 first quarter of 2018, GAAP net loss was $131.7 million compared to a net loss of $132.3 million in the same quarter last year. Adjusted EBITDA was a loss of $73.3 million, compared to a loss of $71.3 million in the same quarter last year.

Cash and Investments: For the first quarter of 2018, the Company ended with $544.4 million in cash and investments, compared to $500.8 million at the end of the prior quarter. 

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Strategic Acquisition: Pandora announced the acquisition of AdsWizz, signaling a clear acceleration of our ad tech capabilities, allowing us to transition from the largest ad supported digital audio publisher to the largest ad supported digital audio platform. AdsWizz has customers in 39 countries, and offers a full stack of tools and services ranging from programmatic audio on both the demand and supply sides to ad serving technology to ROI measurement to podcast tools and self-serve capabilities.

Product & Partnership Launches: Premium Access, which has been used by approximately 13 million listeners to date, continues to showcase the full capabilities of our premiere subscription product, for free, following a view of a 15-second ad. The Company additionally launched Personalized Soundtracks, which provide unique playlists tailored for each listener and are powered by the Music Genome Project—one of the richest data-sets of music information in the world.

Pandora also continued to expand its footprint, launching Pandora Premium on Amazon Fire TV, Fitbit Versa and on the web in the first quarter. Additionally, Pandora announced a partnership with leading smart link aggregator, Linkfire, to make discovering music easier for fans, while amplifying marketing efforts for labels and artists.

Listener Hours: Total listener hours were 4.96 billion for the first quarter of 2018, compared to 5.21 billion for the same period of the prior year.

Active Listeners: Active listeners were 72.3 million at the end of the first quarter of 2018.

Subscribers: Pandora Plus and Pandora Premium subscribers were 5.63 million at the end of the first quarter of 2018.

Other Information

Guidance: Guidance will be discussed during the first quarter 2018 conference call.

First Quarter 2018 Financial Results Conference Call: Pandora will host a conference call today at 2 p.m. PT/5 p.m. ET to discuss first 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 1771049, and available via webcast replay until May 24, 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

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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 and loss on sales of subsidiaries. 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

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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, Inc. 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.

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

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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.



###
Contacts:

Derrick Nueman / Conrad Grodd
Investor Relations
investor@pandora.com
(510) 842-6960

Jette Speights
Pandora Corporate Communications
press@pandora.com
(510) 858-3865



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Pandora Media, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)

Three months ended 
 March 31,

2017
 
2018
Revenue
 

 
 

Advertising
$
223,308

 
$
214,568

Subscription and other
64,878

 
104,665

Ticketing service
27,818

 

Total revenue
316,004

 
319,233

Cost of revenue
 

 
 

Cost of revenue—Content acquisition costs
187,420

 
217,580

Cost of revenue—Other (1)
25,532

 
26,849

Cost of revenue—Ticketing service (1)
18,618

 

Total cost of revenue
231,570

 
244,429

Gross profit
84,434

 
74,804

Operating expenses
 

 
 
Product development (1)
39,588

 
35,884

Sales and marketing (1)
125,102

 
124,216

General and administrative (1)
44,525

 
41,631

Total operating expenses
209,215

 
201,731

Loss from operations
(124,781
)
 
(126,927
)
Interest expense
(7,381
)
 
(7,286
)
Other income, net
229

 
2,582

Total other expense, net
(7,152
)
 
(4,704
)
Loss before provision for income taxes
(131,933
)
 
(131,631
)
Provision for income taxes
(334
)
 
(74
)
Net loss
(132,267
)
 
(131,705
)
Net loss available to common stockholders
$
(132,267
)
 
$
(139,068
)
Basic and diluted net loss per common share
$
(0.56
)
 
$
(0.55
)
Weighted-average basic and diluted common shares
237,515

 
252,934


 (1) Includes stock-based compensation expense as follows: 
 
Three months ended 
 March 31,
 
2017
 
2018
Cost of revenueOther
$
815

 
$
742

Cost of revenueTicketing service
29

 

Product development
7,915

 
6,417

Sales and marketing
13,496

 
11,817

General and administrative
7,363

 
7,460

Total stock-based compensation expense
$
29,618

 
$
26,436






Pandora Media, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
  
 
As of December 31,
 
As of March 31,
 
2017
 
2018
 
(audited)
 
(unaudited)
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
499,597

 
$
454,923

Short-term investments
1,250

 
89,482

Accounts receivable, net
336,429

 
269,584

Prepaid content acquisition costs
55,668

 
35,901

Prepaid expenses and other current assets
19,220

 
20,074

Total current assets
912,164

 
869,964

Convertible promissory note receivable
35,471

 

Property and equipment, net
116,742

 
114,487

Goodwill
71,243

 
71,243

Intangible assets, net
19,409

 
17,891

Other long-term assets
11,293

 
11,285

Total assets
$
1,166,322

 
$
1,084,870

Liabilities, redeemable convertible preferred stock and stockholders’ equity
 
 
 
Current liabilities
 
 
 
Accounts payable
$
14,896

 
$
15,762

Accrued liabilities
34,535

 
37,655

Accrued content acquisition costs
97,751

 
106,254

Accrued compensation
47,635

 
42,908

Deferred revenue
31,464

 
37,681

Total current liabilities
226,281

 
240,260

Long-term debt, net
273,014

 
278,410

Other long-term liabilities
23,500

 
22,714

Total liabilities
522,795

 
541,384

Redeemable convertible preferred stock
490,849

 
498,211

Stockholders’ equity
 
 
 
Common stock
25

 
26

Additional paid-in capital
1,422,221

 
1,453,915

Accumulated deficit
(1,269,351
)
 
(1,408,419
)
Accumulated other comprehensive loss
(217
)
 
(247
)
Total stockholders’ equity
152,678

 
45,275

Total liabilities, redeemable convertible preferred stock and stockholders’ equity
$
1,166,322

 
$
1,084,870






Pandora Media, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands) (unaudited)

Three months ended 
 March 31,
 
2017
 
2018
Operating activities
 
 
 
Net loss
$
(132,267
)
 
$
(131,705
)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
 
 
 
Loss on dispositions

 
2,173

Depreciation and amortization
17,680

 
13,779

Stock-based compensation
29,618

 
26,436

Amortization of premium on investments, net
53

 
(118
)
Accretion of discount on convertible promissory note receivable

 
(534
)
Other operating activities
365

 
65

Amortization of debt discount
4,886

 
5,396

Interest income

 
(810
)
Provision for (recoveries of) bad debt
1,390

 
(315
)
Changes in operating assets and liabilities
 
 
 
Accounts receivable
44,941

 
67,160

Prepaid content acquisition costs
(2,232
)
 
19,767

Prepaid expenses and other assets
(5,579
)
 
(1,588
)
Accounts payable, accrued and other current liabilities
13,192

 
4,749

Accrued content acquisition costs
(3,762
)
 
8,503

Accrued compensation
(13,207
)
 
(1,347
)
Other long-term liabilities
(244
)
 
(786
)
Deferred revenue
3,996

 
6,217

Reimbursement of cost of leasehold improvements
5,236

 
357

Net cash (used in) provided by operating activities
(35,934
)
 
17,399

Investing activities
 
 
 
Purchases of property and equipment
(1,980
)
 
(3,410
)
Internal-use software costs
(7,765
)
 
(5,489
)
Purchases of investments

 
(89,341
)
Proceeds from maturities of investments
11,220

 
1,250

Proceeds from cancellation of convertible promissory note receivable

 
34,742

Net cash provided by (used in) investing activities
1,475

 
(62,248
)
Financing activities
 
 
 
Proceeds from employee stock purchase plan
2,798

 
37

Proceeds from exercise of stock options
2,388

 
248

Tax payments from net share settlements of restricted stock units

 
(287
)
Net cash provided by (used in) financing activities
5,186

 
(2
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
210

 
(8
)
Net decrease in cash, cash equivalents and restricted cash
(29,063
)
 
(44,859
)
Cash, cash equivalents and restricted cash at beginning of period
201,820

 
500,854

Cash, cash equivalents and restricted cash at end of period
$
172,757

 
$
455,995

 
 
 
 
Reconciliation of cash, cash equivalents and restricted cash as shown in the statements of cash flows
 
 
 
Cash and cash equivalents
$
170,881

 
$
454,923

Restricted cash included in prepaid expenses and other current assets line item of Condensed Consolidated Balance Sheets

 
1,072

Restricted cash included in other long-term assets line item of Condensed Consolidated Balance Sheets
1,876

 

Total cash, cash equivalents and restricted cash
$
172,757

 
$
455,995





Pandora Media, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
(unaudited)

 
Three months ended 
 March 31,
 
2017
 
2018
Gross profit
 

 
 

GAAP gross profit
$
84,434

 
$
74,804

Stock-based compensation—Cost of revenue
844

 
742

Amortization of intangibles—Cost of revenue
1,419

 
1,155

Expense associated with the restructurings
312

 

Non-GAAP gross profit
$
87,009

 
$
76,701

 
 
 
 
Adjusted EBITDA and non-GAAP net loss
 

 
 

GAAP net loss
$
(132,267
)
 
$
(131,705
)
Depreciation and amortization
17,680

 
13,779

Stock-based compensation
29,618

 
26,436

Other expense, net
7,152

 
4,704

Provision for income taxes
334

 
74

Expense associated with the restructurings
6,180

 
8,868

Transaction costs

 
2,359

Loss on sales of subsidiaries

 
2,173

Adjusted EBITDA
$
(71,303
)
 
$
(73,312
)
Income tax effects of non-GAAP pre-tax loss
32,158

 
21,750

Other expense, net
(7,152
)
 
(4,704
)
Provision for income taxes
(334
)
 
$
(74
)
Depreciation
(10,557
)
 
(12,261
)
Non-GAAP net loss
$
(57,188
)
 
$
(68,601
)
 
 
 
 
Non-GAAP net loss per common share - basic and diluted
(0.24
)
 
(0.27
)
Weighted average basic and diluted common shares
237,515

 
252,934






Pandora Media, Inc.
Reconciliation of GAAP to Non-GAAP Measures continued
(in thousands, except per share amounts)
(unaudited)

 
Three months ended 
 March 31,
 
2017
 
2018
Product development
 
 
 
GAAP product development
$
39,588

 
$
35,884

Stock-based compensation
(7,915
)
 
(6,417
)
Amortization of intangibles
(1,822
)
 
(97
)
Expense associated with the restructurings
(702
)
 
(622
)
Non-GAAP product development
$
29,149

 
$
28,748

 
 
 
 
Sales and marketing
 
 
 
GAAP sales and marketing
$
125,102

 
$
124,216

Stock-based compensation
(13,496
)
 
(11,817
)
Amortization of intangibles
(1,713
)
 
(83
)
Amortization of non-recoupable ticketing contract advances
(1,986
)
 

Loss on sales of subsidiaries

 
(100
)
Expense associated with the restructurings
(3,656
)
 
(4,608
)
Non-GAAP sales and marketing
$
104,251

 
$
107,608

 
 
 
 
General and administrative
 
 
 
GAAP general and administrative
$
44,525

 
$
41,631

Stock-based compensation
(7,363
)
 
(7,460
)
Amortization of intangibles
(183
)
 
(183
)
Transaction costs

 
(2,359
)
Loss on sales of subsidiaries

 
(2,073
)
Expense associated with the restructurings
(1,510
)
 
(3,638
)
Non-GAAP general and administrative
$
35,469

 
$
25,918






Pandora Media, Inc.
Ad RPM and LPM History
(unaudited)

 
Three months ended March 31,
 
2017
 
2018
Advertising RPM
$
50.87

 
$
55.52

Advertising LPM
$
33.44

 
$
36.35






    




Pandora Media, Inc.
Subscription ARPU and LPU History
(unaudited)

 
Three months ended March 31,
 
2017
 
2018
Subscription ARPU
$
4.76

 
$
6.30

Subscription LPU
$
2.96

 
$
4.65



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