Pandora's Q3 2018 – 6.8 Million Subscribers, Plummeting Active Users and Listening Hours

Pandora'south latest financial report reveals ane affair – the digital radio service probably couldn't survive on its own.

Two months ago, Liberty Media's John Malone achieved what he had long fought for.  SiriusXM had finally acquired Pandora Radio for a cool $3.5 billion.

The move came after two desperate fiscal quarters for Pandora Radio.

In the first quarter of 2018, Pandora's cardinal metrics, including listener date, plummeted.  Despite posting $104.seven million in subscriber acquirement, the digital radio service had 72.3 million active listeners, downwards nearly 5% over the same period final year.

Then, in the second quarter of 2018, Pandora posted $384.viii million in revenue.  Yet, listening hours and active users continued to plummet.  The digital radio service had 71.4 million active listeners, down from 76 million a twelvemonth earlier.  Total listening hours reached five.09 billion, downward from 5.22 billion.

SiriusXM, meanwhile, has 33.five million subscribers and continues to post a cyberspace profit each fiscal quarter.

At present, following the acquisition, Pandora has posted its Q3 2018 report.  And, the report confirms why the digital radio service badly needed an conquering.

Ascent advertising and subscription revenue, plummeting listener engagement.

In its Q3 2018 report, Pandora revealed that it had added 784,000 subscribers during the last fiscal quarter.  The digital radio service now has 6.8 million subscribers.

Advertising revenue reached $291.9 million, up six% over the same period last year.  The company attributed the growth in revenue to "record monetization from high sell-through, the launch of new innovative ad formats, and a connected mix shift toward college CPM advertizement products also every bit the inclusion of AdsWizz."

Subscription revenue likewise totaled $125.8 one thousand thousand, upward 49% over the same catamenia last year.  The visitor has added ane.6 million net new subscribers over that time.  Pandora also stated the higher ARPU from its Premium service helped boost subscription revenue.

For the 3rd quarter of 2018, the visitor's total consolidated not-GAAP (generally accustomed bookkeeping principles) gross turn a profit reached $160.2 meg.  Concluding yr, the digital radio service posted $131.7 million in non-GAAP profit.  GAAP gross profit reached $156.ane million, up from $135.nine 1000000 in the same period last year.

Yet, don't wait the company to be a coin-maker.

GAAP net loss reached $63.7 million, or around $0.27 per share.  Final yr, the visitor posted a net loss of $66.2 one thousand thousand, or $0.34 per share.  Not-GAAP cyberspace loss reached $15.5 million, or $0.06 per share, down slightly from a cyberspace loss of $15.nine million, or $0.06 per share, in Q3 2017.

Revealing further losses, adjusted EBITDA totaled $3.ix 1000000 in losses, down from $5.3 one thousand thousand in the same quarter last yr.  Pandora attributed the loss to a pregnant increase in year-over-year marketing spend.

The company concluded the third quarter with $387.6 million in cash and investments, downwards from $420.viii 1000000 at the end of Q2 2018.

Pandora likewise continues to bleed listeners.

Active users totaled 68.viii 1000000 at the end of the third quarter.  Total listener hours as well decreased to 4.81 billion.