Pandora Media, Inc.

CIK:0001230276|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue
Revenue	$ 417,628	$ 378,639	$ 1,121,655	$ 1,071,477
Cost of revenue
Cost of revenue	261,499	242,778	765,515	718,173
Gross profit	156,129	135,861	356,140	353,304
Operating expenses
Product development	42,553	39,469	118,788	120,290
Sales and marketing	124,760	107,588	374,351	378,581
General and administrative	47,273	48,171	142,521	150,650
Goodwill impairment	0	0	0	131,997
Contract termination (benefit) fees	0	(423)	0	23,044
Total operating expenses	214,586	194,805	635,660	804,562
Loss from operations	(58,457)	(58,944)	(279,520)	(451,258)
Interest expense	(6,768)	(7,592)	(20,799)	(22,377)
Other income, net	1,684	559	6,033	866
Total other expense, net	(5,084)	(7,033)	(14,766)	(21,511)
Loss before (provision for) benefit from income taxes	(63,541)	(65,977)	(294,286)	(472,769)
(Provision for) benefit from income taxes	(125)	(266)	6,933	(877)
Net loss	(63,666)	(66,243)	(287,353)	(473,646)
Net loss available to common stockholders	$ (71,251)	$ (84,562)	$ (309,774)	$ (506,493)
Basic and diluted net loss per common share (in dollars per share)	$ (0.27)	$ (0.34)	$ (1.19)	$ (2.10)
Weighted-average basic and diluted common shares	268,058	245,810	260,327	241,579
Advertising
Revenue
Revenue	$ 291,856	$ 275,741	$ 777,480	$ 777,253
Subscription and other
Revenue
Revenue	125,772	84,414	344,175	218,192
Ticketing service
Revenue
Revenue	0	18,484	0	76,032
Cost of revenue
Cost of revenue	0	11,269	0	50,397
Cost of revenue—Content acquisition costs
Cost of revenue
Cost of revenue	222,191	204,222	666,631	587,517
Cost of revenue—Other
Cost of revenue
Cost of revenue	$ 39,308	$ 27,287	$ 98,884	$ 80,259

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Operating activities
Net loss	$ (63,666)	$ (66,243)	$ (287,353)	$ (473,646)
Adjustments to reconcile net loss to net cash used in operating activities
Goodwill impairment	0	0	0	131,997
Loss on dispositions			2,173	9,459
Loss on extinguishment of convertible debt			14,600	0
Depreciation and amortization			44,167	49,121
Stock-based compensation			82,802	98,327
Amortization (accretion) of premium on investments			(1,200)	78
Accretion of discount on convertible promissory note receivable			(534)	(171)
Other operating activities			802	290
Amortization of debt discount			15,391	14,934
Interest income			(810)	(258)
Provision for bad debt			3,960	10,851
Changes in operating assets and liabilities
Accounts receivable			(20,160)	(11,294)
Prepaid content acquisition costs			32,529	(33,842)
Prepaid expenses and other assets			(4,892)	(17,955)
Accounts payable, accrued and other current liabilities			26,193	(257)
Accrued content acquisition costs			26,159	6,063
Accrued compensation			550	(12,646)
Other long-term liabilities			(9,286)	(532)
Deferred revenue			14,914	5,618
Reimbursement of cost of leasehold improvements			894	5,236
Net cash used in operating activities			(59,101)	(218,627)
Investing activities
Purchases of property and equipment			(7,290)	(12,861)
Internal-use software costs			(15,235)	(13,948)
Payments related to acquisition, net of cash acquired			(66,924)	0
Purchases of investments			(244,744)	0
Proceeds from maturities of investments			147,170	37,084
Proceeds from cancellation of convertible promissory note receivable			34,742	0
Proceeds from sales of subsidiaries, net of cash			0	122,912
Net cash provided by (used in) investing activities			(152,281)	133,187
Financing activities
Proceeds from issuance of redeemable convertible preferred stock			0	480,000
Payments of issuance costs				(29,284)
Payments of issuance costs			(4,886)
Repayment of debt arrangements			0	(90,000)
Proceeds from employee stock purchase plan			4,156	8,012
Proceeds from exercise of stock options			779	7,836
Tax withholdings related to net share settlements of restricted stock units			(1,651)	0
Net cash provided by (used in) financing activities			(1,602)	376,564
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(347)	237
Net increase (decrease) in cash, cash equivalents and restricted cash			(213,331)	291,361
Cash, cash equivalents and restricted cash at beginning of period			500,854	201,820	$ 201,820
Cash, cash equivalents and restricted cash at end of period	287,523	493,181	287,523	493,181	$ 500,854
Supplemental disclosures of cash flow information
Purchases of property and equipment recorded in accounts payable and accrued liabilities			1,515	2,294
Cash paid during the period for interest			3,659	5,791
Accretion of preferred stock issuance costs			0	29,259
Stock dividend payable to preferred stockholders			22,421	3,588
Contingent consideration related to acquisition	5,000	0	5,000	0
Fair value of shares issued related to acquisition	$ 72,956	$ 0	72,956	0
Fair value of convertible promissory note received as partial consideration for sale of subsidiary			0	36,203
Employee stock purchase plan (ESPP) purchases			$ 7,169	$ 11,387

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 287,523	$ 499,597
Short-term investments	100,119	1,250
Accounts receivable, net of allowance of $5,352 at December 31, 2017 and $7,855 at September 30, 2018	373,418	336,429
Prepaid content acquisition costs		55,668
Prepaid expenses and other current assets	25,673	19,220
Total current assets	818,952	912,164
Convertible promissory note receivable	0	35,471
Property and equipment, net	107,802	116,742
Goodwill	178,917	71,243
Intangible assets, net	55,557	19,409
Other long-term assets	11,575	11,293
Total assets	1,172,803	1,166,322
Current liabilities
Accounts payable	28,406	14,896
Accrued liabilities	72,311	34,535
Accrued content acquisition costs	123,910	97,751
Accrued compensation	45,687	47,635
Deferred revenue	55,678	31,464
Total current liabilities	325,992	226,281
Long-term debt, net	255,272	273,014
Other long-term liabilities	25,660	23,500
Total liabilities	606,924	522,795
Redeemable convertible preferred stock: 480,000 shares issued and outstanding at December 31, 2017 and 480,000 at September 30, 2018	513,270	490,849
Stockholders’ equity
Common stock: 250,867,462 shares issued and outstanding at December 31, 2017 and 269,774,079 at September 30, 2018	27	25
Additional paid-in capital	1,632,178	1,422,221
Accumulated deficit	(1,579,125)	(1,269,351)
Accumulated other comprehensive loss	(471)	(217)
Total stockholders’ equity	52,609	152,678
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	$ 1,172,803	$ 1,166,322