Pandora has announced financial results for the fourth quarter and full year ended December 31, 2017.
Ad RPM reaches an all-time high; subscription revenue grows 63%. Q4 revenue excluding Australia, New Zealand & Ticketfly was $395.3 million, growing 7% year-over-year. Ad RPM hits an all-time high of $75.65 in Q4 2017, growing 12% year-over-year. Q4 subscription revenue was $97.7 million, growing 63% year-over-year. Total subscribers were 5.48 million, growing 25% year-over-year. Q4 revenue and adjusted EBITDA significantly exceeded our forecast. Launched Premium Access, enabling greater interactivity in ad-supported tier. Announced plans to reinvest $45 million of expected annualized cost-savings toward key growth initiative
“Digital audio is on the verge of massive growth – music consumption is increasing, podcasts are gaining popularity and voice-activated devices are quickly becoming mainstream. Just like video, audio is transitioning from a one-to-many broadcast experience to a one-to-one model with personalization at the core. Pandora’s scale, listener engagement and data position us well to capitalize on these trends,” said Roger Lynch, CEO of Pandora. “From launching on-demand for our ad-supported listeners to expanding multiple device partnerships in the last quarter alone, we’re building a strong foundation for audience growth and improved monetization. These efforts will enable us to strengthen business fundamentals and reinvigorate Pandora in 2018.”
