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

SHARE THIS ARTICLE
Related Articles

Is The Lenovo Yoga Book The Most Innovative Windows LapLet

By: Rob Enderle    12/9/2016

Sometimes you run into a product that redefines a segment. In cars it was things like the 240Z and Miata, in Smartphones the BlackBerry and then the i…

Read More

From Forecast to Fact: The Top Security Threats and Targets of 2016

By: Special Guest    12/9/2016

In early 2016, we shared our predictions of key security threats likely to hit us this year. As predicted, cyber espionage, ransomware, insider threat…

Read More

Pebble Drops Race, Moves to Fitbit

By: Steve Anderson    12/8/2016

Pebble offers confirmation that it's pulling up stakes in the wearable tech race, and moving lock, devs and software to Fitbit.

Read More

SoftBank CEO Cozies Up to Trump

By: Paula Bernier    12/7/2016

SoftBank Group founder and CEO Masayoshi Son, who is also Sprint's chairman, told President-elect Donald Trump he wants to create 50,000 new U.S. jobs…

Read More

Predicting the FCC's Path Forward Under President-Elect Donald Trump

By: Special Guest    12/6/2016

President-elect Donald J. Trump will become the 45th President of the United States of America on January 20, 2017. Many in the tech, media and teleco…

Read More