Pandora Reports 29 Percent Revenue Increase

• Total consolidated revenue was $297.3 million, growing 29% year-over-year
• Total RPMs reached $49.84, growing 14% year-over-year; Ad RPMs were up 19% year-over-year to $45.47
• Advertising revenue was $220.3 million, growing 23% year-over-year
• Local advertising revenue was $61.3 million, growing 42% year-over-year
• Ticketing service revenue was $22.3 million, growing approximately 30% year-over-year
• Pandora raises Full Year 2016 revenue and adjusted EBITDA guidance

Pandora today announced financial results for the first quarter ended March 31, 2016.

“This was a really strong start to the year, and I see clear signs of momentum across our business,” said Tim Westergren, Pandora's founder and CEO. “Our team is rapidly bringing Pandora's audacious strategy to life, fundamentally changing how listeners discover and enjoy music while helping artists build sustainable careers.”

First Quarter 2016 Financial Results

Revenue: For the first quarter of 2016, total consolidated revenue was $297.3 million, a 29% year-over-year increase. Excluding revenue from ticketing services, total revenue was $275.0 million, an increase of 19% year-over-year. Advertising revenue was $220.3 million, a 23% year-over-year increase. Subscription and other revenue was $54.7 million, a 5% year-over-year increase. Ticketing service revenue was $22.3 million, an approximate 30% year-over-year increase1.

Adjusted EBITDA: For the first quarter of 2016, consolidated adjusted EBITDA was a loss of $57.4 million, compared to a loss of $20.9 million in the same quarter last year. Consolidated adjusted EBITDA excludes $38.7 million in expense from stock-based compensation, $13.3 million of depreciation and amortization expense, $5.3 million of other expense and $0.4 million of provision for income taxes.

Cash and Investments: For the first quarter of 2016, the Company ended with $382.5 million in cash and investments, compared to $416.9 million at the end of the prior quarter. Cash used in operating activities was $13.1 million for the first quarter of 2016, compared to $27.0 million of cash provided by operating activities in the same period of the prior year.

Other Business Metrics

Listener Hours: Total listener hours grew 4% to 5.52 billion for the first quarter of 2016, compared to 5.30 billion for the same period of the prior year.

Active Listeners: Active listeners were 79.4 million at the end of the first quarter of 2016, up compared to 79.2 million for the same period of the prior year.