Pandora Exceeds Revenue, But Facing Layoffs
Pandora made several interesting announcements yesterday, not the least of which was the news that the company is undertaking “operational efficiency measures” to reduce overall operating costs in 2017. Translation: Pandora plans to reduce its U.S. employee base (excluding Ticketfly) by approximately 7 percent by the end of Q1 2017. Pandora CEO Tim Westergren said, “2016 was a year of significant investment for Pandora. In 2017, we will manage the business toward full-year adjusted EBITDA profitability. While making workforce reductions is always a difficult decision, the commitment to cost discipline will allow us to invest more heavily in product development and monetization and build on the foundations of our strategic investments.”
On a brighter note, Pandora says it expects to exceed its previously announced Q4 2016 revenue and adjusted EBITDA guidance and has surpassed 4.3 million in paid subscription customers. The company also launched Pandora Plus along with new features and functionality on its ad-supported tier to listeners at the end of the third quarter. By the end of December 2016, the product generated more than 375,000 net new subscribers. “The initial response from both new and existing listeners to the enhancements on the service is extremely encouraging,” said Westergren. “This excitement and engagement bodes well for the introduction of Pandora Premium later this quarter.”
