Pandora operates a music service built on its radio heritage and has launched an on-demand tier, Pandora Premium, to compete with Spotify and Apple Music. The company reported $316 million in revenue for the quarter and an EPS loss of $0.24, slightly better than expectations. Total subscribers grew 20% year‑over‑year to 4.71 million in Q1 2017, with 500,000 trial starts of Pandora Premium (80% from upsells), while active listeners fell to 76.7 million and total listener hours slipped to 5.21 billion. Pandora also generates ticketing revenue from its Ticketfly acquisition ($27.8 million in the quarter, up 25% year‑over‑year). The company has laid off about 7% of its workforce and is undertaking a strategic review of whether to pursue a sale. Management says it needs a stronger balance sheet to invest in product and marketing as it transitions to on‑demand streaming. Pandora operates a personalized, ad-supported internet radio service with a freemium model that limits free listening to 40 hours per month before a $1 upsell. The company passed 50 million users in April (up from 40 million the previous December) and has pushed mobile as a core growth channel, including launching an iPad app. Mobile usage is expected to accelerate with the iPhone 4.0 OS allowing background playback, which will increase streaming volume and royalty costs but also ad inventory. Pandora has signed distribution deals with device makers and car companies to extend reach. After a negotiated compromise on Internet streaming rates with webcasters, artists, and record labels, plus the freemium model and a recovering ad market, the company moved from near-death to profitability within a few months. The company said the new funding will be used to fuel growth and invest in additional resources. Pandora Media is a personalized Internet radio and music discovery service offering access on PCs, in the home, and on mobile devices. The company distributes its service through partnerships with AT&T, Apple, RIM and Sprint. Pandora is based in Oakland, CA, and maintains sales offices in Los Angeles, New York and Chicago. Bridge Bank's Technology Banking Division has established a $10m line of credit to provide working capital for continued growth. CEO Joe Kennedy said the relationship will increase Pandora’s financial flexibility and resources to enhance ongoing growth. The announced facility is a credit line (debt) rather than an equity investment. Pandora is an Internet streaming radio service and one of the more popular offerings in the space. The company recently closed a new $35 million financing round led by Greylock Partners. Greylock partner David Sze will join Pandora’s board. Pandora says the new funds will be used toward continued growth and development. The company reported its best quarter in ad sales and expects to be profitable by next year. Prior to this round Pandora had raised slightly over $20 million, with its last financing in 2005.

Total raised

$195M

Funding rounds

4

Latest round

Series A

Latest activity

May 2017