Pandora Media (P) saw its loss narrow to $61.53 million, or $0.27 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $85.93 million, or $0.40 a share. On adjusted basis, net loss for the quarter stood at $16.06 million, or $0.07 a share compared with a net profit of $23.66 million, or $0.11 a share in the last year period. Revenue during the quarter grew 12.95 percent to $351.90 million from $311.56 million in the previous year period. Gross margin for the quarter expanded 1353 basis points over the previous year period to 38.84 percent. Operating margin for the quarter stood at negative 15.69 percent as compared to a negative 27.56 percent for the previous year period.
Operating loss for the quarter was $55.21 million, compared with an operating loss of $85.86 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $61.53 million compared to negative $85.93 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 17.49 percent for the quarter compared to negative 27.58 percent in the last year period.
"Pandoras transformation continues with the launch of compelling new products and partnerships that open up significant revenue streams," said Tim Westergren, Founder and chief executive officer of Pandora. "Only Pandora is uniquely positioned to create deeply personalized and easy to use listening experiences that delight and engage listeners. A great product that’s effectively monetized is the cornerstone of success in digital music streaming."
For the fourth-quarter, Pandora Media projects revenue to be in the range of $362 million to $374 million. Pandora Media projects revenue to be in the range of $1,354 million to $1,366 million for financial year 2016.
Operating cash flow turns negativePandora Media has spent $179.07 million cash to meet operating activities during the nine month period as against cash inflow of $28.94 million in the last year period. The company has spent $43.76 million cash to meet investing activities during the nine month period as against cash inflow of $32.03 million in the last year period
Cash flow from financing activities was $96.25 million for the nine month period, up 1,378.01 percent or $89.74 million, when compared with the last year period.
Cash and cash equivalents stood at $207.70 million as on Sep. 30, 2016, down 14.52 percent or $35.29 million from $242.98 million on Sep. 30, 2015.
Working capital increases
Pandora Media has recorded an increase in the working capital over the last year. It stood at $418.31 million as at Sep. 30, 2016, up 14.97 percent or $54.46 million from $363.85 million on Sep. 30, 2015. Current ratio was at 2.61 as on Sep. 30, 2016, up from 2.30 on Sep. 30, 2015.
Days sales outstanding went down to 68 days for the quarter compared with 73 days for the same period last year.
At the same time, days payable outstanding was almost stable at 6 days for the quarter, when compared with the previous year period.
Debt increases substantially
Pandora Media has witnessed an increase in total debt over the last one year. It stood at $337.43 million as on Sep. 30, 2016, up 30,575.36 percent or $336.33 million from $1.10 million on Sep. 30, 2015. Long-term debt stood at $337.43 million as on Sep. 30, 2016. Total debt was 27.28 percent of total assets as on Sep. 30, 2016, compared with 0.13 percent on Sep. 30, 2015.
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