Pandora Media Inc P equity, debt and subsidiaries

Accuracy score :
97%

Pandora Media Inc P

Summary (from the latest annual report)

  • Total equity: 153 million USD
  • Market Cap is 1.14 billion USD (the last price of the stock is 4.48 USD)
  • Pandora Media Inc is a radio broadcasting company that offers music streaming and automated music recommendation services
  • Total equity has decreased from 554 million USD in 2016 to 153 million in 2017
  • The company has 500 million USD in cash on account
  •  In 2017 long-term debt was 273 million USD, short-term debt was zero (In 2016 total debt was 342 million USD)
  • Company's revenue increased in 2017 to 1.46 billion USD from 1.38 billion in 2016
  • Net loss in 2017 was 518 million USD, Net income in 2016 was 343 million USD

Opinion about the company

Fundamentally it is a not good company  ( company operates with the net loss, Total debt is 273 million USD), the company has 500 million USD in cash on account, ROE is negative: around - 500 %).

Pandora Media Inc P

Pandora is the world’s most powerful music discovery platform, offering a personalized experience for each of its listeners wherever and whenever they want to listen to music—whether through mobile devices, car speakers or connected devices in the home. Unlike traditional radio that broadcasts the same content at the same time to all of its listeners, Pandora enables its listeners to create personalized stations and playlists, as well as search and play songs and albums on-demand. The Music Genome Project, Pandora’s content programming algorithms and data collected from its listeners power Pandora’s ability to predict listener music preferences, play music content suited to the tastes of each individual listener and introduce listeners to the music they will love. Founded by musicians, Pandora also empowers artists with valuable data and tools to help grow their audience and connect with their fans. Pandora allows users to listen to music selections based on the user's artist or genre preference and then provide positive or negative feedback, which is utilized by the program to choose subsequent musical selections. Pandora can be accessed through a web browser or the company's application that can be downloaded to a personal computer or mobile phone. The service is available in the United States, Australia, and New Zealand. Pandora derives the majority of its revenue in the United States.

In 2000, Pandora Media Inc. began as Savage Beast Technologies, and was founded by Will Glaser, Jon Kraft and Tim Westergren.The idea was to create a separate, individualized radio station for each user, with music that the user prefers without music that he or she does not prefer. The company quickly ran through its initial $2 million in funding, running out of money by 2001. In 2004, the company returned to its initial vision of producing customized radio stations and changed its name to Pandora Media. The website began as a paid service but quickly changed to an advertising service to make it also available free for users. In 2011, Pandora launched its IPO on the NYSE and is listed as 'P', two years after that Pandora announced that their radio streaming service had passed 200 million users, about 70 million of whom were active monthly. As of December 31, 2017, Pandora had 74.7 million active users during the trailing 30-day period and 5.48 million paid subscribers.

The majority of its listener hours occur on mobile devices, with the majority of revenue generated from advertising on Pandora’s ad-supported radio service on these devices. The company also generates increasing revenue from their subscription offerings.

  • Advertising represents 73 % of total revenues
  • Subscription and other represent 22 % of total revenues
  • Ticketing service represents 5 % of total revenues

For the year ended December 31, 2017, compared to 2016, advertising revenue increased $2.4 million or 0.2% due to the average price per ad and the number of ads sold remaining relatively flat compared to the prior year.

 

 P standalone subsidiaries and acquisitions :

  • On June 11, 2013, Pandora announced it would purchase FM radio station KXMZ in Rapid City, South Dakota. On August 31, 2017, Pandora completed the sale of KXMZ
  • On October 7, 2015, Pandora announced it had acquired independent ticketing agency Ticketfly for $450 million. On September 1, 2017, Pandora completed the sale of Ticketfly to Eventbrite Inc. ("Eventbrite") for $200.0 million
  • In November 2015, streaming music service Rdio, founded by Skype co-founders Janus Friis and Niklas Zennstroem, declared bankruptcy and sold its assets to Pandora for $75 million in an all-cash deal

Total =  $75 million

Their principal executive offices are located in Oakland, California, under a lease for approximately 250,000 square feet of office space, expiring on September 30, 2020. Their second largest office is located in New York, New York, under a lease for approximately 100,000 square feet of office space, expiring on September 30, 2026