As expected, Tim Westergren and co. this week filed an IPO with the assistance of Morgan Stanley and J.P. Morgan and managed to raise approximately $235 million at $16 a share and 14.7 million shares of issued stock. The stock subsequently opened up today at $20/share before rising to $23/share, meaning that the streaming music provider now has a valuation bordering on $3 billion.
That’s not too shabby for a company still looking for ways to make a profit.
Back in February we reported:
During the first 9 months of 2010, Pandora had revenues of $90 million but still reported a loss of $328,000. In the previous year, Pandora lost $16.7 million on revenue of $55 million. So in one year’s time, Pandora was able to add $35 million+ to their bottom line while also running their business more efficiently.
So where is Pandora’s revenue coming from? Advertising mostly – 86% to be exact. The rest of Pandora’s revenue is derived from subscriptions.
It’s also worth noting that Pandora has an accumulated debt of $83.9 million.
On the plus side, though, the company has over 80 million registered users and has experienced over 200% subscriber growth in the last two years alone. Now if only they can monetize that rising customer base more efficiently they’d be doing A-ok.
Pandora trades on the NYSE with the symbol ‘P’.
At the time of this writing, it’s trading at $20.07 after reaching an intraday high of $26.