A little tougher to figure, but revenue was up 54%, and I’ll stick with them as long as they keep increasing revenue by large amounts year over year. They are hiring lists of sales people which is keeping earnings down, especially in the first quarter when advertising is sharply down after the Xmas season is over.
Here are my notes:
Apr 2014 – Announced Mar quarter results
Revenue of $180.1 million, up 54%
Mobile revenue now 74% of adj total revenue
Adj earnings of a loss of 13 cents
User engagement reaches record highs
Share of total U.S. radio listening in March 2014 was 9.1%, up from 8.1% last year
Pandora started 2014 with robust momentum and continued solid growth. Our strong first quarter results demonstrate our deep listener engagement, accelerating monetization, and increasing leverage in our business model. Looking ahead, we will continue to invest aggressively to extend our leadership position and drive forward the future of radio.
First Quarter Financial Results
Revenue: Revenue was $180.1 million, a 54% year-over-year increase. Advertising revenue was $140.6 million, a 45% year-over-year increase. Subscription and other revenue was $39.5 million, up 94%.
Cash and Investments: We ended with $445.9 million in cash and investments, compared with $450.1 million at the end of 2013. We used $2.2 million in operating activities compared to $12.9 million used in the year-ago quarter.
Other Business Metrics
Listener Hours: Total listener hours grew 12% to 4.80 billion for the first quarter of 2014, compared to 4.26 billion for the same period last year.
March 2014 Active Listeners: Active listeners were 75.3 million at the end of March, up 8% from 69.5 million a year ago. And our listeners are strongly engaged as listener hours grew even faster at 12%, increasing from 4.26 billion to 4.80 billion
We are providing the following financial guidance:
Second Quarter 2014 Guidance: Revenue is expected to be in the range of $213 million to $218 million. Adj earnings are expected to be between $0.00 and $0.03.
Full Year 2014 Guidance: Revenue is now expected to be in the range of $880 million to $900 million, from $870 million to $890 million. Adj earnings are now expected to be between $0.14 and $0.18, from $0.13 to $0.17.
Despite typical Mar quarter seasonal advertising headwind, these strong financial results were driven by increasing user engagement, rising listening hours and our continued focus on improving monetization.
In March, we experienced our first ever week with over 25 million active listeners every weekday. Importantly those listeners are using Pandora for record lengths of time consuming an average of 21.9 hours per active user for the last 30 days of March.
The strengthening connection with listeners was supported by recent product enhancements like our alarm clock, sleep timer and station recommendations platform. To highlight just one example of incremental impact these programs can deliver, people using our alarm clock functionality on Android are listening to Pandora 30% more days per week and 3% more hours each day than they listened prior.
Additionally, we continue to expand Pandora’s availability. As an example of our progress, Pandora is now available in 10 out of 10 of the best selling passenger vehicles.
All of this has contributed to our increasing market share. Our share of total U.S. radio listening increased from 8.1% a year ago to 9.1%.
Bolstered by the momentum in our monetization efforts, we made some important program changes to optimize Pandora One, including a modest price increase for new subscribers which will begin to take place in Q2.
Conclusion: A little tough to figure, but revenue was up 54%, and I’ll stick with them as long as they keep increasing revenue by large amounts year over year. They are hiring lists of sales people which is keeping earnings down, especially in the first quarter when advertising is sharply down after the Xmas season is over.