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

Nevada: Silver State to Tech Center

By: Doug Mohney    4/24/2015

Silver was the primary mineral mined in Nevada when it was admitted to the union in 1864, earning it the slogan of "The Silver State." Times changed, …

Read More

Comcast, Telecoms Need to Clean Up Their Own Houses

By: Doug Mohney    4/24/2015

Big telecom mergers just don't fly these days, but it took Comcast 14 months and at least $237 million spent in 2014 to figure it out it couldn't buy …

Read More

Creating a Smarter Network Infrastructure for the Connected World

By: TMCnet Special Guest    4/24/2015

The need to be connected to the 'smarter world' is ever increasing with the rise in the number of mobile devices. LTE is now a global reality for mill…

Read More

Major League Baseball's Sports Analytics Deliver Next-Gen Stats

By: Bob Wallace    4/24/2015

Get your next-gen stats here! Major League Baseball Advanced Media (MBLAM) this week launched "next-generation" stats league-wide that it hopes will c…

Read More

My Neighbor and Your Enterprise Data Privacy: They're Not as Unrelated as You Think

By: TMCnet Special Guest    4/23/2015

If you give your house key to your neighbor, he has the opportunity to snoop around through your vinyl album collection. That has lessons for enterpri…

Read More