Pandora had a huge first-mover advantage, but really did not do much with it. Pandora ends the presentation with a concept page – as consultants we have seen these pages too often – which is a mix of “drivers” which will help this business to grow – everything from new products to new distribution. RPM doesn't represent how much you have actually earned rather, it's calculated by dividing your estimated earnings by the number of page views, impressions, or queries you received, then multiplying by 1000. For example: If you earned an estimated $0.15 from 25 page views, then your page RPM would equal ($0.15 / 25) * 1000, or $6.00."įrom this slide from their investor relations presentation, I assume that Pandora believes they can offer advertisers a higher RPM than other means. Heard of this metric before and found this definition online for RPM from Google Ad Sense: "Revenue per 1000 impressions (RPM) represents the estimated earnings you'd accrue for every 1000 impressions you receive. 7) Good customer base for advertising.Ĩ) Increase RPM (revenue per thousand impressions). Looks like 80%+ of their money comes advertising.įor mobile ads, looks like Pandora is one of the biggest DJ of ads – right behind Facebook, Google and Twitter.
#List of current pandora radio ads Bluetooth
To me this is a bit of an odd argument as most cars have bluetooth and can stream from your phone AND lots of people listen to real time radio because they want to listen to talk radio or sports. Pandora’s argument is that most people listen to radio in their car – and therefore – need to integrate into the hardware and grab more of this drive time. Pandora has done an admirable job of getting MORE PEOPLE to use the service MORE OFTEN.Ĥ) Opportunity for more Pandora in the car. Market share has grown since the IPO and is more than double the closest competitor, Spotify. Lots of room for internet radio to eat into more traditional radio. Of that, 80% is AM/FM “terrestrial” radio. Here is the Pandora management team’s logic: 1) Lots of people listen to radio.ĩ1% of Americans (245M) listen to radio for 18 hours a week. Since we have already gotten an x-ray view of the company’s terrible financial situation, let’s see what the Pandora Csuite say about their business prospects and why you should invest your money in this stock. Nope? Since J(IPO date), Pandora stock is down 19%. So maybe Pandora stock has done well in spite of poor profitability and dilution of equity? We know that financial performance and stock performance are not always correlated in the short-term. Diluting equity holders by issuing more stock, and adding on more debt for a company that does not show profits. In 2013, Pandora got $377 from issue more stock. Then in 2015, they issued $301M in debt. Where is Pandora getting their money from? How can you lose money each year and still survive? Some seriously disturbing things here.
Net loss every year (completely unsustainable).Expenses up just as fast, exceeding revenues every year (uh, bad news).Revenues up considerably from 2012, from $427M to $1.1B (not bad, right?).Lots of places online to look at financial statements (yes, I am sure banker-types would go to Bloomberg), but I like Google Finance. Then the question enters my brain – how much money does Pandora make? “Cutting to the chase”, Pandora loses money. Yes, the ads are annoying, but not bad enough to pay $55 a year for the subscription. My buddy turned me on to Carla Bruni, and it’s my “go-to” station. It’s also a fun short-hand way to ask people what they listen to. On my computer, on my Roku, on my Amazon Echo, in my car, basically everywhere. You can tell, because I don’t listen to Pandora anymore.
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