Pandora 2012 Annual Report Download - page 61

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Table of Contents
Product Development
Fiscal Year Ended January 31, FY 2010 to
FY 2011
$ Change
FY 2011 to
FY 2012
$ Change
2010 2011 2012
(in thousands)
Product development $ 6,026 $ 6,736 $ 13,425 $ 710 $ 6,689
2011 Compared to 2012. Product development expenses increased $6.7 million primarily due to $6.0 million higher employee-related expenses driven
by a 46% increase in headcount.
2010 compared to 2011. Product development expenses increased $0.7 million as a $1.0 million increase in employee-related expenses due to
approximately 20% higher headcount was partially offset by lower equipment expense in fiscal 2011 as compared to fiscal 2010.
Marketing and Sales
Fiscal Year Ended January 31, FY 2010 to
FY 2011
$ Change
FY 2011 to
FY 2012
$ Change
2010 2011 2012
(in thousands)
Marketing and sales $ 17,426 $ 36,250 $ 65,010 $ 18,824 $ 28,760
2011 Compared to 2012. Marketing and sales expenses increased $28.8 million primarily due to $22.5 million higher employee-related costs, driven by
a 95% increase in headcount, an increase in external sales and marketing expenses of $3.9 million related to search engine marketing, marketing research and
event costs, and $2.0 million in higher infrastructure costs related to facilities and equipment.
2010 Compared to 2011. Marketing and sales expenses increased $18.8 million due to an $8.6 million increase in employee-related costs, driven by
approximately 90% higher headcount and a $7.3 million increase in commissions driven by higher revenue and headcount. In addition, marketing and sales
expenses increased $2.4 million related to higher customer acquisition and advertising effectiveness survey costs and higher spending for public relations
activities.
General and Administrative
Fiscal Year Ended January 31, FY 2010 to
FY 2011
$ Change
FY 2011 to
FY 2012
$ Change
2010 2011 2012
(in thousands)
General and administrative $ 6,358 $ 14,183 $ 35,428 $ 7,825 $ 21,245
2011 Compared to 2012. General and administrative expenses increased $21.2 million primarily due to a $9.7 million increase in employee-related
expenses driven by a 64% increase in headcount, higher compensation, a $7.7 million increase in professional services fees, and a $2.9 million increase in
infrastructure costs.
2010 Compared to 2011. General and administrative expenses increased $7.8 million primarily due to a $5.3 million increase in employee-related costs
driven by approximately 195% higher headcount and higher legal, accounting and other consulting costs. In addition, general and administrative expenses
were higher by $1.6 million primarily due to merchant and other transaction costs.
49