Company Website:
http://www.pandora.com
OAKLAND, Calif. -- (Business Wire)
Pandora (NYSE:P), the largest music streaming service in the U.S., today
announced an organizational restructuring designed to prioritize its
strategic growth initiatives and optimize overall business performance.
The redesign shifts resources to focus on ad-tech and audience
development efforts while positioning the company for improved operating
leverage over time. It also simplifies the organization into a flatter
structure for smarter, faster execution.
Effective immediately, a combination of eliminated roles and other
cost-saving measures are expected to result in combined annualized
savings of approximately $45 million to adjusted EBITDA. The savings
will be reinvested into growth initiatives including ad-tech, non-music
content, device integration and marketing technology, toward which the
company will redeploy existing employees and hire for new positions.
Even with significant reinvestment in these growth initiatives, the cost
reduction efforts mean that Pandora expects operating expenses,
excluding subscription commissions, to represent a lower percentage of
revenue in full-year 2018 than in 2017. In addition to creating
operating leverage with these organizational changes, Pandora is focused
on capturing additional cost efficiencies with tighter business
processes, automation, expansion in lower-cost locations and management
of content costs – all of which will be incremental to the savings above.
“Pandora is the largest music streaming service in the U.S. People spend
more time on Pandora than any other digital platform in the country, and
as our dynamic industry evolves, we must also evolve,” said Roger Lynch,
CEO of Pandora. “As I shared last quarter, we know where and how to
invest in order to grow. We have an aggressive plan in place that
includes strategic investments in our priorities: ad-tech, product,
content, partnerships and marketing. I am confident these changes will
enable us to drive revenue and listener growth.”
Pandora also announced plans to expand its presence and workforce in
Atlanta, providing a significant opportunity to add instrumental talent
in a region with lower costs than the company’s headquarters in Oakland,
CA.
“Atlanta is a city with a rich history in music and a large pool of
diverse tech talent that we can tap into as we scale,” added Lynch.
“While we are committed to having Oakland remain our headquarters, we’re
excited to build on the great foundation of our awesome team there and
expand our presence in Atlanta over time.”
“These changes allow us to act faster, invest for growth and extend our
leadership as the audio market hits what we believe will soon be a major
inflection point,” said Lynch.
ABOUT PANDORA
Pandora is the world’s most powerful music discovery platform – a place
where artists find their fans and listeners find music they love. We are
driven by a single purpose: unleashing the infinite power of music by
connecting artists and fans, whether through earbuds, car speakers, live
on stage or anywhere fans want to experience it. Our team of highly
trained musicologists analyzes hundreds of attributes for each recording
which powers our proprietary Music Genome Project®, delivering billions
of hours of personalized music tailored to the tastes of each music
listener, full of discovery, making artist / fan connections at
unprecedented scale. Founded by musicians, Pandora empowers artists with
valuable data and tools to help grow their careers and connect with
their fans.
www.pandora.com
| @pandoramusic
| www.pandoraforbrands.com
| @PandoraBrands
| amp.pandora.com
"Safe Harbor" Statement
This press release contains forward-looking statements within the
meaning established by the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements regarding adjusted
EBITDA. These forward-looking statements are based on Pandora's current
assumptions, expectations and beliefs and involve substantial risks and
uncertainties that may cause results, performance or achievement to
materially differ from those expressed or implied by these
forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to: our operation in an
emerging market and our relatively new and evolving business model; our
ability to increase our listener base and listener hours; our ability to
attract and retain advertisers; our ability to generate additional
revenue on a cost-effective basis; competitive factors; our ability to
continue operating under existing laws and licensing regimes; our
ability to enter into and maintain commercially viable direct licenses
with record labels for the right to reproduce and publicly perform sound
recordings on our service; our ability to establish and maintain
relationships with makers of mobile devices, consumer electronic
products and automobiles; our ability to manage our growth and
geographic expansion; our ability to continue to innovate and keep pace
with changes in technology and our competitors; our ability to expand
our operations to delivery of non-music content; our ability to protect
our intellectual property; risks related to service interruptions or
security breaches; and general economic conditions worldwide. Further
information on these factors and other risks that may affect the
business are included in filings with the Securities and Exchange
Commission (SEC) from time to time, including under the heading “Risk
Factors” in our Quarterly Reports on Form 10-Q for the quarters ended
September 30, 2017, and the quarter ended June 30, 2017.
The financial information contained in this press release should be read
in conjunction with the consolidated financial statements and notes
thereto included in Pandora’s most recent reports on Form 10-K and Form
10-Q, each as they may be amended from time to time. Pandora’s results
of operations for the current period are not necessarily indicative of
Pandora’s operating results for any future periods.
These documents are available online from the SEC or on the SEC Filings
section of the Investor Relations section of our website at
investor.pandora.com. Information on our website is not part of this
release. All forward-looking statements in this press release are based
on information currently available to Pandora, which assumes no
obligation to update these forward-looking statements in light of new
information or future events.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are
prepared and presented in accordance with accounting principles
generally accepted in the United States ("GAAP"), the Company uses the
following non-GAAP measures of financial performance: non-GAAP gross
profit, non-GAAP net loss, non-GAAP basic net loss per common share,
non-GAAP diluted net loss per common share, adjusted EBITDA, non-GAAP
product development, non-GAAP sales and marketing and non-GAAP general
and administrative. The presentation of this additional financial
information is not intended to be considered in isolation from, as a
substitute for, or superior to, the financial information prepared and
presented in accordance with GAAP. These non-GAAP measures have
limitations in that they do not reflect all of the amounts associated
with our results of operations as determined in accordance with GAAP. In
addition, these non-GAAP financial measures may be different from the
non-GAAP financial measures used by other companies. These non-GAAP
measures should only be used to evaluate our results of operations in
conjunction with the corresponding GAAP measures. Management compensates
for these limitations by reconciling these non-GAAP financial measures
to the most comparable GAAP financial measures within our earnings
releases.
Non-GAAP gross profit, non-GAAP net loss, non-GAAP basic net loss per
common share, non-GAAP diluted net loss per common share, non-GAAP
product development, non-GAAP sales and marketing and non-GAAP general
and administrative differ from GAAP in that they exclude stock-based
compensation expense, intangible amortization expense, amortization of
non-recoupable ticketing contract advances, goodwill impairment,
contract termination fees, expense associated with restructurings and
loss on sales of subsidiaries. The income tax effects of non-GAAP
pre-tax loss have been reflected in non-GAAP net loss, non-GAAP basic
net loss per common share and non-GAAP diluted net loss per common share.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180131006283/en/
Contacts:
Pandora Public Relations
Jette Speights, 415-385-8829
jspeights@pandora.com
or
Pandora
Investor Relations
Derrick Nueman, 415-713-7485
dnueman@pandora.com
Source: Pandora
© 2024 Canjex Publishing Ltd. All rights reserved.