Pandora 2012 Annual Report Download - page 74

Table of Contents
Pandora Media, Inc.
Consolidated Statements of Cash Flows
(In thousands)
Fiscal Year Ended January 31,
2010 2011 2012
Operating Activities
Net loss $ (16,753) $ (1,764) $ (16,107)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 1,143 1,578 4,455
Loss on retirement of fixed assets 219 (15) 296
Stock-based compensation 477 1,612 9,187
Remeasurement of preferred stock warrants 239 869 4,499
Amortization of premium on investments — — 246
Amortization of debt issuance cost and debt discount 2 4 190
Changes in assets and liabilities:
Accounts receivable (14,873) (22,979) (24,526)
Prepaid expenses and other assets (1,955) (2,739) 676
Accounts payable and accrued liabilities 1 5,482 (865)
Accrued royalties (2,235) 9,036 15,742
Accrued compensation 709 2,375 8,147
Deferred revenue 5,552 9,763 3,322
Reimbursement of cost of leasehold improvements — — 616
Net cash provided by (used in) operating activities (27,474) 3,222 5,878
Investing Activities
Purchases of property and equipment (1,892) (8,211) (11,644)
Changes in restricted cash 323 318 (520)
Purchases of short-term investments — — (66,890)
Maturities of short-term investments — — 19,984
Net cash used in investing activities (1,569) (7,893) (59,070)
Financing Activities
Borrowings under debt arrangements 7,650 3,644 —
Repayments of debt (6,297) (392) (7,596)
Proceeds from issuance of common stock 122 548 2,074
Proceeds from issuance of common stock to directors for cash — 3,800 —
Proceeds from early exercise of stock options — 1,705 —
Proceeds from exercise of preferred stock warrants — — 165
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs 34,124 22,206 —
Proceeds from initial public offering net of offering costs — — 90,632
Payment of dividends to preferred stockholders at initial public offering — — (31,005)
Proceeds from buyers in investor offer — 7,908 —
Payments to sellers in investor offer — (7,908) —
Excess tax benefit from stock-based compensation plans — 44 —
Net cash provided by financing activities 35,599 31,555 54,270
Net increase in cash and cash equivalents 6,556 26,884 1,078
Cash and cash equivalents at beginning of year 9,608 16,164 43,048
Cash and cash equivalents at end of year $ 16,164 $ 43,048 $ 44,126
Supplemental disclosures of noncash financing activities
Conversion of preferred stock warrants into common stock warrants $ — $ — $ (2,151)
Conversion of preferred stock into common stock $ — $ — $ (124,341)
Issuance of preferred stock warrants $12 $ — $ —
Issuance of Series B redeemable convertible preferred stock upon exercise of warrant $ — $ 142 $ —
Accruals of preferred stock dividends, net of reversals $ 6,461 $ (792) $ 25,218
Deemed dividend on Series D and Series E redeemable convertible preferred stock $ 1,443 $ — $ —
Accretion of Preferred stock issuance cost $ 218 $ 300 $ 110
Supplemental disclosures of cash flow information
Cash paid during the period for income taxes $ — $ — $ 125
Cash paid during the period for interest $ 1,572 $ 371 $ 887
The accompanying notes are an integral part of the consolidated financial statements.
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