Pandora, the personalized internet radio service that helps you find new music based on your old and current favorites is upping it’s Initial Public Offering (IPO) price as well as the number of common stocks offered.
The company filed an amended registration with the US Securities and Exchange Commission for an IPO of its Common Stock. Pandora now plans to sell 14,684,000 shares and sees an offering price of $10 to $12 per share, an increase from 13,684,000 shares and a price range of $7 to $9 initially expected. This new price point and number of shares will allow Pandora to raise as much as $202 million when it debuts on Wall Street.
Last week, the company had stated that it was expecting it’s IPO shares to go for $7 to $9, which would have resulted in the company raising a total of $142 million.
At this new $12 a share price point, Pandora’s market capital will be nearly $2 billion ($1.9 to be precise).
Wall Street traders and investors may want to edumucate themselves with more real numbers on revenue and losses before they dive in and place their bets. Along with record revenues driven primarily by the streaming music service’s popularity on mobile devices, Pandora’s losses are up too, more than doubling in 2011 Q1, with the company warning investors that it will be losing money for the next 20 months through 2012.
Here is a quick look at 2011 Q1 numbers for Pandora, via it’s most recent SEC filing
- Revenue: $51 million, up 131 percent from $21.6 million
- Losses: $6.8 million, up 126 percent from $3 million
- Registered users: 94 million, up 77 percent from 53 million
- Active users: 34 million, up 88 percent from 18 million
- Listener hours (total time users spent playing music): 1.6 billion, up 128 percent from 0.7 billion.
Another thing to keep in mind, as Pandora’s user base and listener hours grow, so do its music costs. Right now, the company is said to be spending about 60 percent of its revenue on music royalty fees to record labels and artists.
Pandora filed to list on the New York Stock Exchange under the ticker “P.”
[photo via wtfcontent.com ]