Pandora mobile ad revenues leap to $59.2M, CFO plans exit
Pandora reported fiscal second-quarter 2013 losses of $5.4 million, tripling from $1.8 million a year ago as content acquisition costs continued to increase. But the streaming music platform's year-over-year revenues grew $34.3 million to $101.3 million, thanks to significant growth in its mobile advertising business.
Pandora generated $89.4 million in advertising during the quarter, with mobile ad sales contributing $59.2 million, an 86 percent year-over-year increase. Premium subscriptions added $11.9 million to the company's quarterly total.
Pandora now reports 54.9 million active listeners, a 48 percent hike over the last 12 months. Total listener hours climbed 80 percent over a year ago to 3.3 billion hours, with mobile listener hours growing 96 percent year-over-year. During a CTIA Wireless 2012 event in May, Pandora CEO Joe Kennedy revealed that more than 70 percent of Pandora listening hours take place on mobile or other connected devices.
During Pandora's earnings call Wednesday, Chief Financial Officer Steve Cakebread announced plans to leave the company in the near future. "Please note that there are no disputes or financial issues with the company," Cakebread said, adding he wishes to explore other opportunities. Pandora has not yet named Cakebread's replacement.
Mobile music services are on pace to yield $16 billion in 2012 revenues, corresponding with 11.6 percent of mobile consumer spending, according to a Strategy Analytics report published earlier this year. The firm states that mobile music spending behaviors are changing rapidly, with ringtones declining sharply and streaming services like Pandora, Spotify and Deezer gaining traction in the U.S. and Western Europe.
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