Pandora: Local Ad Efforts Already Paying Off

Mike Herring

On Thursday's earning conference call, CFO Mike Herring told anaylists Pandora's investment in penetrating the local radio advertising market is paying off.

He stated local advertising revenue in the second quarter reached approximately 20% of total ad revenue to $35.3 million, an increase of 144% from approximately $14.5 million in the same period last year.

According to Herring, Pandora now has 109 local sellers in 37 markets and an inside sales force that addresses another 150 DMAs.  Pandora aims to extend its market share for the foreseeable future.

He also told analysts "we ended the second quarter of 2014 with total revenue of $218.9 million, representing 38% growth on a non-GAAP basis from the year ago quarter, above the high-end of our guidance range.

Advertising revenue increased 39% in the second quarter of 2014 to $177.3 million compared to $127.6 million in revenue in the same quarter last year. Strong execution in mobile continues to drive ad revenue and for the second quarter, mobile ad revenue was $134.4 million, an increase of 54% over the same period last year, accounting for a record high 76% of total ad revenue as we continue to close the mobile monetization gap."