Pandora’s Loss Widens, but Revenue Rises
While focusing on growing its user base, Pandora's losses have widened in the first quarter ending March 31. The company posted a net loss of $48.3 million, or 23 cents per diluted share.
However, the digital radio service's revenue has grown by bringing in $230.8 million, an 18.8% increase over the $194.3 million that was generated in the first quarter of 2014.
During the quarter, advertising revenue growth has remained strong, totaling $178.7 million, an increase of 27.1%. Subscription revenue has shown a 3.1% decline, to $52 million.
In the Q1, the listener hours showed 11% growth, 5.3 billion in total, while active listeners also grew 5.6% to 79.2 million, as compared to 75.3 million in the corresponding period last year.
In a statement, Pandora chairman, president and CEO Brian McAndrews said, “We've been actively investing in every part of our business -- from the music we play, to the ad technology and music-maker products we offer. This quarter's results are a reflection of those investments paying off’.
While looking forward, the company has provided financial guidance, projecting revenue for the second quarter to reach around $280-285 million, with full-year revenue expected to touch $1.16-1.18 billion.
In Q1, adjusted losses before income, taxes, depreciation and amortization were $20.8 million, which were down from the $22.4 million in negative EBITDA in Q1 2014.
The company is holding $221 million in cash and $188.5 million in accounts receivable. Its shareholder equity is $562.7 million in total.
The share price of the company closed at $17.71, right before release of its financial results, with a gain of $0.20 over the previous day.