Pandora IPO Expected This Week, Possibly on Wednesday

By Ed Silverstein June 14, 2011

Pandora’s IPO is expected to take place this week, possibly on Wednesday, based on recent media reports.

USA Today said that Pandora’s first day of trading on the New York Stock Exchange will be on Wednesday, and the financial media continue to predict heavy investor interest in the Internet stock’s IPO.

That’s even with the company failing to achieve a profit.

For example, Reuters reports that in the quarter ending in April, Pandora had revenues of $51 million and a net loss of $6.8 million.

It its analysis of the stock offering, The Street reports that “Pandora Media … is losing money even as its revenues increase.”

USA Today adds that Pandora “has been in the red for years” – based on data contained in U.S. Securities and Exchange Commission documents.

“They're basically operating fairly close to break-even, and it's better than if they were burning through cash,” Nick Einhorn, analyst at Renaissance Capital, told USA Today. “Obviously, in the long term, the question is whether it will be profitable.”

There is some positive news on the revenue front about the company. Pandora said its revenues “more than doubled in the quarter ended on April 30 to $51 million from $21.6 million in the same period a year earlier,” based on data in SEC filings, according to The Street. In addition, Pandora – which earns money mostly from advertising – with $90 million in the recent quarter, translating to an increase of 137 percent over the prior year numbers, according to Minyanville.

Pandora’s range for IPO shares is between $10 and $12, upped from an earlier range of between $7 and $9. In addition, the company is expected to sell as many as 14.7 million shares, as opposed to the earlier number of 13.7 million shares, according to a story carried by The Associated Press.

Pandora, an Internet radio service, has 90 million registered users, according to TechZone360.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.

Ed Silverstein is a TechZone360 contributor. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

Related Articles

Microsoft One-Ups Apple, PC Manufacturers with Surface Desktop

By: Doug Mohney    10/26/2016

Once upon a time, Apple was king of hardware design, be it the desktop, laptop, or tablet. No longer. Microsoft is now the one to watch as it hones in…

Read More

Hurdles for Operators Deploying a Multi-Point Wireless Backhaul System

By: Greg Friesen    10/26/2016

Multi-point wireless systems offer much promise for backhaul. An operator can deploy a single central unit (CU) and the connect end sites as they are …

Read More

Free Public Wi-Fi: Is it a Trick or a Treat?

By: Special Guest    10/26/2016

Public Wi-Fi allows us to stay connected wherever we go. While the convenience drives us to connect more often, by no means does that indicate we're i…

Read More

Will the Next Generation of Computers be Crowdsourced? Maybe

By: Doug Mohney    10/25/2016

If you have any doubts that the world of PC design has stagnated - looking at you Apple, Dell, HP, Lenovo, and whoever else is left standing this week…

Read More

The Cybersecurity Race to Secure the Internet of Things

By: Doug Mohney    10/25/2016

Last week's wave of worldwide DDoS (Distributed Denial of Service) attacks through the use of unsecured Internet of Things (IoT) devices is both distu…

Read More