Pandora 2012 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2012 Pandora annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Table of Contents
Comparison of Fiscal 2010, 2011 and 2012
Revenue
Fiscal Year Ended January 31, FY 2010 to
FY 2011
$ Change
FY 2011 to
FY 2012
$ Change
2010 2011 2012
(in thousands)
Advertising $ 50,147 $ 119,333 $ 239,957 $ 69,186 $ 120,624
Subscription services and other 5,042 18,431 34,383 $ 13,389 $ 15,952
Total revenues $ 55,189 $ 137,764 $ 274,340 $ 82,575 $ 136,576
2011 Compared to 2012. Advertising revenue increased $120.6 million due to increases in the number of advertising campaigns enabled by higher
listener hours and higher spending on campaigns by our advertisers. Subscription services and other revenue increased $16.0 million due to a 52% increase in
the number of Pandora One subscribers.
2010 Compared to 2011. Advertising revenue increased $69.2 million due to increases in the number of advertising campaigns enabled by higher
listener hours and higher spending on campaigns by our advertisers. Subscription services and other revenue increased $13.4 million due to a 63% increase in
the number of Pandora One subscribers.
Cost and Expenses
Cost of Revenue
Fiscal Year Ended January 31, FY 2010 to
FY 2011
$ Change
FY 2011 to
FY 2012
$ Change
2010 2011 2012
(in thousands)
Cost of revenue $ 7,892 $ 11,559 $ 22,759 $ 3,667 $ 11,200
2011 Compared to 2012. Cost of revenue increased $11.2 million due to a $5.8 million increase in hosting services costs as a result of a 109% increase
in listener hours, a $2.7 million increase in employee-related expenses driven by a 78% increase in headcount and $2.4 million in higher infrastructure costs.
2010 Compared to 2011. Cost of revenue increased $3.7 million due to a $2.1 million increase in streaming and hosting costs related to an increase in
listener hours and the number of campaigns, a $0.7 million increase driven by higher employee-related costs due to approximately 40% higher headcount, and
$0.6 million higher depreciation expense due to equipment purchases.
48