Pandora IPO: $3 billion value at $16 a share

Wed, Jun 15, 2011

Finance, News

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.


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