Internet radio service Pandora records strong revenue growth, but struggles to stem losses
Q2 2014 total revenue was $218.9 million, up 43 percent from the prior year, but losses nearly doubled to $11.728 million in Q2
OAKLAND, Calif. – July 24, 2014 –- Pandora, the leading Internet radio service, today announced financial results for the second quarter ended June 30, 2014.
“Our better than expected second quarter results demonstrate success and continued business acceleration as a result of our investments in mobile and local advertising. Mobile advertising reached a record 76% of total ad revenue and local grew at 144% year‐over‐ year,” stated Brian McAndrews Chairman, President and CEO of Pandora. “As a company, we are united by Pandora’s clear sense of purpose to unleash the infinite power of music, and we’re attracting the brightest stars in the advertising, technology and music industries to help drive our business forward.”
Second Quarter 2014 Financial Results
Revenue: For the second quarter of 2014, total revenue was $218.9 million, a 38% year‐ over‐year increase on a non‐GAAP basis1. Advertising revenue was $177.3 million, a 39% year‐over‐year increase. Subscription and other revenue was $41.6 million, a 35% year‐ over‐year increase on a non‐GAAP basis.
EPS: For the second quarter of 2014, GAAP basic and diluted EPS were a loss of $0.06. Non‐ GAAP basic and diluted EPS were $0.04, both excluding $20.6 million in expense from stock‐ based compensation and $0.2 million in amortization of intangible assets. GAAP basic and diluted EPS and non‐GAAP basic EPS were based on 205.7 million weighted average shares outstanding and non‐GAAP diluted EPS was based on 218.6 million weighted average shares outstanding.