Pandora Q1 up 58% (audio)


PandoraFor Q1 of fiscal 2013, total revenue was $80.8 million, a 58% YOY increase.  Ad revenue was $70.6 million, a 62% YOY increase.  Subscription and other revenue was $10.2 million, a 38% YOY increase. Net loss per share (GAAP) for the quarter was ($0.12). Non-GAAP net loss per share was ($0.09), excluding $5.5 million in stock-based compensation.

Pandora ended Q1 with $80.6 million in cash, cash equivalents and short-term investments, compared with $90.6 million at the end of the prior quarter.  Cash used in operating activities was approximately $10.6 million for Q1 of fiscal 2013, compared to $2.8 million generated in the year-ago quarter.

Total listener hours grew 92% to 3.09 billion for the quarter, compared to 1.6 billion for Q1 of fiscal 2012.

Revenue is expected to be in the range of $99 million to $101 million for fiscal Q2.  Non-GAAP net loss per share is expected to be between ($0.03) and ($0.05).

Revenue is expected to be in the range of $420 million to $427 million for fiscal 2013.  Non-GAAP net loss per share is expected to be between ($0.07) and ($0.11).

“Pandora is off to an excellent start, exceeding our first quarter outlook and raising our expectations for the full fiscal year,” said Joe Kennedy, Pandora CEO.  “This quarter Pandora averaged more than 50 million active users a month who generated more than 3.09 billion listening hours across Pandora’s multiple platforms – desktop, auto, consumer electronics, and mobile devices.  Consumers continue to embrace Pandora’s unparalleled personalized radio experience at an extraordinary rate, propelling Pandora’s market leadership to an all-time record share of 5.95% of total U.S. radio listening.  Advertisers want to be everywhere their consumers are.  They are moving quickly to speak with their target customers across the Pandora platform, with the majority of the top 50 digital advertisers in the U.S. already having bought multiplatform advertising on Pandora.  Pandora is the future of radio.”

Listen to Kennedy on the call–especially interesting is the targeted political advertising opportunities available:

[audio:Joe-Kennedy-052312.mp3|titles=Joe Kennedy, Pandora CEO]

RBR-TVBR observation: As we’ve stated, Pandora’s future rides on ad sales.  To get more ad buys, the company is hiring reps that have established relationships with agencies and advertisers that use traditional radio. The thought is a 360-degree perspective on the business will lend more credibility and provide comparative answers to Radio vs. Pandora questions on metrics, reach, frequency, CPMs, etc. One of the packages Pandora is offering radio ad reps to move over is a base salary of $80,000-$90,000 (non draw); A regional account list totaling $80,000-$90,000 in commission, with opportunity for growth; 6,000-8,000 shares of stock, vesting over three years; Total compensation package for year one: $160,000-$180,000. So bottom line—Pandora is willing to pay dearly for access to the traditional radio buyer.