10 Fast Facts About Pandora

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Will the future be streamed? That’s the underlying question behind Pandora Media‘s prospectus. The popular music-streaming company just filed its intention to go public with the Securities & Exchange Commission. Once again, the nerd in me was compelled to study the over 100-page filing for ten fascinating facts about the company.

There’s A Pandora Listener Born Every Second
Despite growing pressure from upstarts like Grooveshark and Rdio, Pandora continues to add members at a rapid clip. As of January, the company had more than 80 million registered users and added about one new user per second.

The Hours
There’s a whole lot of listening going on. In Pandora’s past fiscal year the company streamed 3.9 billion hours of music.

Chat to the Future
Pandora’s business is currently all about music. Makes sense, since music format stations represent 80% of total radio share according to research firm Arbitron. But Pandora sees a future in streaming sports, talk and news content. “We think there is an opportunity over the long term to offer these types of content in addition to music.”

The Revolution will be Mobilized
Smart phones are clearly the secret to Pandora’s future success. More than 50% of all listener hours were streamed through a mobile device in January. The Pandora mobile app has been downloaded over 50 million times. It is the 2nd all-time free downloaded app for the iPhone and the top free downloaded app for the iPad.

Money Matters
Pandora’s revenue for the 2010 fiscal year was $55.2 million and its net loss was $16.8 million. For the first nine months of its 2011 fiscal year, it earned $90.1 million and posted a loss of $0.3 million. As of October 31 2010, the company had accumulated $83.9 million.

Don’t expect to see any huge profits any time soon. Pandora expects to “continue to incur operating losses on an annual basis through at least the end of fiscal 2012.”

Content Costs
Content acquisition is by far the highest cost Pandora incurs. For the first nine fiscal months through October 31, the company paid out $44.4 million on content acquisition, half of all its costs. By comparison, its number two expense was sales and marketing at $21.9 million.

Advertising Rising
Believe it or not, Pandora only plays under a minute of advertising per hour of listening on average. Nevertheless, for the first nine months through October 31, 86.4% of its revenue came from the sale of advertising. Pandora expects “to continue to derive a substantial majority of our revenue from the sale of advertising in the future.”

Google Pandora
Like big-time bloggers, Google provides a significant portion of Pandora’s advertising sales. According to the company, Google accounted for 11.4% of revenue in fiscal 2010 and 7.4% of revenue for the first nine months of fiscal 2011.

Who Is Getting Paid
Every time a company goes public, current shareholders get paid. The three largest shareholders of Pandora are Crosslink Capital at 23.03%, Walden Venture Capital at 18.59% and Greylock Partners and14.13 %.

All Thumbs
You know how Pandora works. Give the songs you like a thumbs up and the ones you don’t a thumbs down. It’s how Pandora determines what you want more or less of. In 2010 the company amassed three billion thumbs. Since its launch its collected eight billion thumbs.

What do you think? Would you give Pandora stock a thumbs up or thumbs down?

Republished with author's permission from original post.

Jesse Noyes
Jesse came to Eloqua from the newsroom trenches. As Managing Editor, it's his job to find the hot topics and compelling stories throughout the marketing world. He started his career at the Boston Herald and the Boston Business Journal before moving west of his native New England. When he's not sifting through data or conducting interviews, you can find him cycling around sunny Austin, TX.

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