Pandora Media (P) saw its loss widen to $90.01 million, or $0.38 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $19.41 million, or $0.09 a share. On an adjusted basis, net loss for the quarter stood at $29.66 million, or $0.13 a share compared with a net profit of $10.21 million, or $0.04 a share in the last year period.
Revenue during the quarter grew 16.79 percent to $392.60 million from $336.16 million in the previous year period. Gross margin for the quarter contracted 1399 basis points over the previous year period to 34.77 percent. Operating margin for the quarter stood at negative 20.96 percent as compared to a negative 5.81 percent for the previous year period.
Operating loss for the quarter was $82.30 million, compared with an operating loss of $19.53 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $30.40 million compared with $24.76 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.74 percent for the quarter compared to 7.37 percent in the last year period.
"We made significant progress in 2016 by driving leverage in our core business while accelerating subscriptions to our paid product," said Tim Westergren, founder and chief executive officer of Pandora. "We enter 2017 laser-focused on the growth of our ad-supported business, the launch and growth of our subscription products, and an artist-to-fan platform to drive listener engagement and ticket sales. These three strategic pillars operate in harmony to create mutually reinforcing revenue streams across a large and growing addressable market."
For the first-quarter 2017, Pandora Media forecasts revenue to be in the range of $310 million to $320 million.
For fiscal year 2017, Pandora Media forecasts revenue to be in the range of $1,550 million to $1,700 million.
Operating cash flow remains negative
Pandora Media has spent $181.69 million cash to meet operating activities during the year as against cash outgo of $42.08 million in the last year.
The company has spent $52.16 million cash to meet investing activities during the year as against cash outgo of $102.27 million in the last year.
Cash flow from financing activities was $99.76 million for the year, down 67.09 percent or $203.38 million, when compared with the last year.
Cash and cash equivalents stood at $199.94 million as on Dec. 31, 2016, down 40.26 percent or $134.72 million from $334.67 million on Dec. 31, 2015.
Working capital declines
Pandora Media has witnessed a decline in the working capital over the last year. It stood at $371.70 million as at Dec. 31, 2016, down 17.71 percent or $79.97 million from $451.67 million on Dec. 31, 2015. Current ratio was at 2.46 as on Dec. 31, 2016, down from 2.95 on Dec. 31, 2015.
Debt increases substantially
Pandora Media has witnessed an increase in total debt over the last one year. It stood at $342.25 million as on Dec. 31, 2016, up 45.90 percent or $107.67 million from $234.58 million on Dec. 31, 2015. Pandora Media has witnessed an increase in long-term debt over the last one year. It stood at $342.25 million as on Dec. 31, 2016, up 45.90 percent or $107.67 million from $234.58 million on Dec. 31, 2015. Total debt was 28.89 percent of total assets as on Dec. 31, 2016, compared with 18.91 percent on Dec. 31, 2015. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, up from 0.32 as on Dec. 31, 2015.
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