At the end of February, Pandora released the fourth quarter of 2017 (Q4) earnings report. In addition to revenues in Australia, New Zealand and newly sold Ticketfly business, Pandora achieved a 7% year-on-year increase in revenue during the quarter compared to last year. It reached 395.3 million U.S. dollars. At the same time, the company’s net loss in the fourth quarter was US$44.7 million, which was a significant decrease from the US$90 million it had last year.
The quarterly revenue and adjusted EBITDA (earnings before tax depreciation and amortization) both exceeded Pandora’s previous estimates, of which the adjusted EBITDA was US$5.8 million. Pandora’s subscription service revenue for the quarter reached US$97.7 million, a year-on-year increase of 63%, which offset the 5% year-on-year decline in advertising revenue. Subscribers increased 25% year-on-year to 5.48 million, an increase of 290,000 from the third quarter of last year.
Pandora’s advertising revenue was only US$297.7 million in the quarter, down from US$313.3 million in the same period last year, but it’s worth noting that Pandora’s advertising RPM (per 1,000 exposures) reached US$75.65 during the quarter. The year-on-year increase of 12%. The 6% year-on-year decrease in active users is the main reason for the decrease in advertising revenue. The total number of active users of Pandora in the quarter was US$74.7 million.
It should be noted that Pandora’s year-on-year revenue excludes Australia and New Zealand because the services of the two cities have ceased on July 31, 2017; its original ticket website, Ticketfly, was sold on September 1, 2017. The United States event planning service platform Eventbrite.