Pandora 2016 Annual Report Download - page 112

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Eleven Months
Ended December 31,
2013 2014 2015
(in thousands)
Stock-based compensation expense
Cost of revenue—Other $1,946 $4,414 $5,531
Cost of revenue—Ticketing service — — 40
Product development 8,802 17,546 23,671
Sales and marketing 20,222 42,165 52,747
General and administrative 9,071 22,930 29,656
Total stock-based compensation expense $40,041 $87,055 $111,645
During the eleven months ended December 31, 2013 and twelve months ended December 31, 2014 and 2015, we
capitalized $0.7 million, $1.3 million and $2.7 million of stock-based compensation as internal use software and website
development costs, respectively.
Table of Contents
Pandora Media,€Inc.
Notes to Consolidated Financial Statements - Continued
101
11.€€€€€€€€€€€€€€€€€€€€€€ Common Stock and Net Loss per Share
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Each share of common stock has the right to one vote per share. The holders of common stock are also entitled to receive
dividends as and when declared by our board of directors, whenever funds are legally available.
Follow-on Public Offering
In September 2013, we completed a follow-on public equity offering in which we sold an aggregate of 15,730,000 shares
of our common stock, inclusive of 2,730,000 shares sold pursuant to the exercise by the underwriters of an option to purchase
additional shares, at a public offering price of $25.00 per share. In addition, another 5,200,000 shares were sold by certain
selling stockholders. We received aggregate net proceeds of $378.7 million, after deducting underwriting discounts and
commissions and offering expenses from sales of our shares in the offering. We did not receive any of the proceeds from the
sales of shares by the selling stockholders.
Net Loss per Share
Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock
outstanding during the period.
€
Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options
and restricted stock units, to the extent dilutive. Basic and diluted net loss per share were the same for the eleven months ended
December 31, 2013, the twelve months ended December 31, 2014 and the twelve months ended December€31, 2015, as the
inclusion of all potential common shares outstanding would have been anti-dilutive.
€