Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Pandora Media, Inc. | |
Entity Central Index Key | 1,230,276 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 242,621,114 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 209,581 | $ 199,944 |
Short-term investments | 18,056 | 37,109 |
Accounts receivable, net of allowance of $3,633 at December 31, 2016 and $5,708 at June 30, 2017 | 288,347 | 309,267 |
Prepaid content acquisition costs | 39,869 | 46,310 |
Prepaid expenses and other current assets | 18,188 | 33,191 |
Assets held for sale | 227,844 | 0 |
Total current assets | 801,885 | 625,821 |
Long-term investments | 0 | 6,252 |
Property and equipment, net | 120,792 | 124,088 |
Goodwill | 71,243 | 306,691 |
Intangible assets, net | 23,235 | 90,425 |
Other long-term assets | 13,490 | 31,533 |
Total assets | 1,030,645 | 1,184,810 |
Current liabilities | ||
Accounts payable | 12,780 | 15,224 |
Accrued liabilities | 43,601 | 35,465 |
Accrued content acquisition costs | 88,260 | 93,723 |
Accrued compensation | 45,580 | 60,353 |
Deferred revenue | 32,475 | 28,359 |
Other current liabilities | 0 | 20,993 |
Liabilities held for sale | 43,059 | 0 |
Total current liabilities | 265,755 | 254,117 |
Long-term debt, net | 352,157 | 342,247 |
Other long-term liabilities | 25,701 | 34,187 |
Total liabilities | 643,613 | 630,551 |
Redeemable convertible preferred stock: 172,500 shares issued and outstanding at June 30, 2017 | 173,095 | 0 |
Stockholders’ equity | ||
Common stock: 235,162,757 shares issued and outstanding at December 31, 2016 and 242,412,275 at June 30, 2017 | 24 | 24 |
Additional paid-in capital | 1,347,285 | 1,264,693 |
Accumulated deficit | (1,132,721) | (709,636) |
Accumulated other comprehensive loss | (651) | (822) |
Total stockholders’ equity | 213,937 | 554,259 |
Total liabilities, redeemable convertible preferred stock and stockholders’ equity | $ 1,030,645 | $ 1,184,810 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 5,708 | $ 3,633 |
Common stock, shares issued (in shares) | 242,412,275 | 235,162,757 |
Common stock, shares outstanding (in shares) | 242,412,275 | 235,162,757 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue | ||||
Advertising | $ 278,204 | $ 265,126 | $ 501,512 | $ 485,434 |
Subscription and other | 68,900 | 55,125 | 133,778 | 109,857 |
Ticketing service | 29,730 | 22,771 | 57,548 | 45,036 |
Total revenue | 376,834 | 343,022 | 692,838 | 640,327 |
Cost of revenue | ||||
Cost of revenue—Content acquisition costs | 195,875 | 176,633 | 383,295 | 347,897 |
Cost of revenue—Other | 27,440 | 25,106 | 52,972 | 46,301 |
Cost of revenue—Ticketing service | 20,510 | 15,259 | 39,128 | 29,905 |
Total cost of revenue | 243,825 | 216,998 | 475,395 | 424,103 |
Gross profit | 133,009 | 126,024 | 217,443 | 216,224 |
Operating expenses | ||||
Product development | 41,233 | 33,560 | 80,821 | 69,171 |
Sales and marketing | 145,891 | 123,589 | 270,993 | 241,022 |
General and administrative | 57,954 | 40,760 | 102,479 | 87,284 |
Goodwill impairment | 131,997 | 0 | 131,997 | 0 |
Contract termination fees | 23,467 | 0 | 23,467 | 0 |
Total operating expenses | 400,542 | 197,909 | 609,757 | 397,477 |
Loss from operations | (267,533) | (71,885) | (392,314) | (181,253) |
Interest expense | (7,404) | (6,247) | (14,785) | (12,422) |
Other income, net | 78 | 255 | 307 | 1,117 |
Total other expense, net | (7,326) | (5,992) | (14,478) | (11,305) |
Loss before benefit from (provision for) income taxes | (274,859) | (77,877) | (406,792) | (192,558) |
Benefit from (provision for) income taxes | (277) | 1,544 | (611) | 1,123 |
Net loss | (275,136) | (76,333) | (407,403) | (191,435) |
Net loss available to common stockholders | $ (289,664) | $ (76,333) | $ (421,931) | $ (191,435) |
Net loss per share, basic and diluted (in dollars per share) | $ (1.20) | $ (0.33) | $ (1.76) | $ (0.84) |
Weighted-average basic and diluted common shares | 241,320 | 229,745 | 239,428 | 228,202 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (275,136) | $ (76,333) | $ (407,403) | $ (191,435) |
Change in foreign currency translation adjustment | (62) | (55) | 129 | (288) |
Change in net unrealized loss on marketable securities | 7 | 88 | 42 | 393 |
Other comprehensive income (loss) | (55) | 33 | 171 | 105 |
Total comprehensive loss | $ (275,191) | $ (76,300) | $ (407,232) | $ (191,330) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||
Net loss | $ (407,403) | $ (191,435) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Goodwill impairment | 131,997 | 0 |
Depreciation and amortization | 35,115 | 27,637 |
Stock-based compensation | 68,226 | 71,087 |
Amortization of premium on investments, net | 73 | 247 |
Other operating activities | 186 | 179 |
Amortization of debt discount | 9,799 | 8,938 |
Bad debt | 9,274 | 1,295 |
Changes in operating assets and liabilities | ||
Accounts receivable | 12,594 | 12,139 |
Prepaid content acquisition costs | 6,441 | (7,271) |
Prepaid expenses and other assets | (11,664) | (8,869) |
Accounts payable, accrued and other current liabilities | 15,072 | (17,409) |
Accrued content acquisition costs | (5,475) | 26,177 |
Accrued compensation | (13,191) | 5,497 |
Other long-term liabilities | 176 | 1 |
Deferred revenue | 4,116 | 8,812 |
Reimbursement of cost of leasehold improvements | 5,236 | 4,397 |
Net cash used in operating activities | (139,428) | (58,578) |
Investing activities | ||
Purchases of property and equipment | (8,541) | (34,564) |
Internal-use software costs | (10,894) | (14,310) |
Changes in restricted cash | 642 | 250 |
Purchases of investments | 0 | (11,091) |
Proceeds from maturities of investments | 25,274 | 20,007 |
Proceeds from sale of investments | 0 | 500 |
Payments related to acquisitions, net of cash acquired | 0 | (676) |
Net cash (used in) provided by investing activities | 5,197 | (40,384) |
Financing activities | ||
Proceeds from issuance of redeemable convertible preferred stock | 172,500 | 0 |
Payments of issuance costs | (12,625) | (32) |
Proceeds from employee stock purchase plan | 6,146 | 3,837 |
Proceeds from exercise of stock options | 3,138 | 1,873 |
Tax payments from net share settlements of restricted stock units | 0 | (2,761) |
Net cash provided by financing activities | 169,159 | 2,917 |
Effect of exchange rate changes on cash and cash equivalents | 292 | (255) |
Net (decrease) increase in cash and cash equivalents | 35,220 | (96,300) |
Cash and cash equivalents at beginning of period | 199,944 | 334,667 |
Less: Cash held for sale | (25,583) | 0 |
Cash and cash equivalents at end of period | 209,581 | 238,367 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for interest | 4,827 | 3,228 |
Purchases of property and equipment recorded in accounts payable and accrued liabilities | 1,885 | 5,308 |
Accretion of preferred stock issuance costs | 13,935 | 0 |
Stock dividend payable to preferred stockholders | $ 595 | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Pandora—Internet Radio and On-Demand Music Services Pandora is the world’s most powerful music discovery platform, offering a personalized experience for each of our listeners wherever and whenever they want to listen to music—whether through earbuds, car speakers or live on stage. Pandora is available as an ad-supported service, a radio subscription service called Pandora Plus and an on-demand subscription service called Pandora Premium. The majority of our listener hours occur on mobile devices, with the majority of our revenue generated from advertising on our ad-supported service on these devices. We offer both local and national advertisers the opportunity to deliver targeted messages to our listeners using a combination of audio, display and video advertisements. We also generate revenue from subscriptions to Pandora Plus and Pandora Premium. We were incorporated as a California corporation in January 2000 and reincorporated as a Delaware corporation in December 2010. Our principal operations are located in the United States, and we also are located in Australia, New Zealand, Canada and the United Kingdom. Ticketing Service We operate our ticketing service through our subsidiary Ticketfly, a leading live events technology company that provides ticketing and marketing software and services for our clients, which are venues and event promoters across North America. Ticketfly's ticketing, digital marketing and analytics software helps promoters book talent, sell tickets and drive in-venue revenue, while Ticketfly's consumer tools help fans find and purchase tickets to events. Ticketfly’s revenue primarily consists of service and merchant processing fees from ticketing operations. In June 2017, we entered into an agreement to sell Ticketfly. Refer to Note 6 "Assets Held for Sale" in the Notes to Condensed Consolidated Financial Statements for further details on the Ticketfly disposition. As used herein, "Pandora," "we," "our," "the Company" and similar terms include Pandora Media, Inc. and its subsidiaries, unless the context indicates otherwise. Basis of Presentation The interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X, and include the accounts of Pandora and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of our management, the interim unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial position for the periods presented. These interim unaudited condensed consolidated financial statements are not necessarily indicative of the results expected for the full fiscal year or for any subsequent period and should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2016. Certain changes in presentation have been made to conform the prior period presentation to current period reporting. We have reclassified prepaid content acquisition costs from the prepaid expenses and other assets line item to the prepaid content acquisition costs line item of our condensed consolidated statements of cash flows. We have also reclassified amortization of internal use-software costs from the product development and sales and marketing line items to the cost of revenue—other and general and administrative line items of our condensed consolidated statements of operations. Lastly, we have also reclassified bad debt and goodwill impairment from the other operating activities line item to the bad debt and goodwill impairment line items of the condensed consolidated statements of cash flows. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Estimates are used in several areas including, but not limited to determining accrued content acquisition costs, amortization of minimum guarantees under content acquisition agreements, selling prices for elements sold in multiple-element arrangements, |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Other than discussed below, there have been no material changes to our significant accounting policies as compared to those described in our Annual Report on Form 10-K for the year ended December 31, 2016. Stock-Based Compensation—Restricted Stock Units and Stock Options Stock-based awards granted to employees, including grants of restricted stock units ("RSUs") and stock options, are recognized as expense in our statements of operations based on their grant date fair value. We recognize stock-based compensation expense on a straight-line basis over the service period of the award, which is generally three to four years. We estimate the fair value of RSUs at our stock price on the grant date. We generally estimate the grant date fair value of stock options using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model is affected by our stock price on the date of grant, the expected stock price volatility over the expected term of the award, which is based on projected employee stock option exercise behaviors, the risk-free interest rate for the expected term of the award and expected dividends. Stock-based compensation expense is recorded in the statement of operations for only those stock-based awards that will vest. In the first quarter of 2017 we adopted new accounting guidance from the Financial Accounting Standards Board ("FASB") on stock compensation, or ASU 2016-09, as described in "Recently Adopted Accounting Standards" below and have elected to account for forfeitures as they occur, rather than estimating expected forfeitures. Prior to the adoption of ASU 2016-09, we elected to use the "with and without" approach as described in Accounting Standards Codification 740—Income Taxes in determining the order in which tax attributes are utilized. As a result, we previously only recognized a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to us have been utilized. In addition, we elected to account for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through the statement of operations. Net Loss per Common Share Basic net loss per common share is computed by dividing the net loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units, market stock units, performance-based RSUs and instruments convertible into common stock, to the extent dilutive. Basic and diluted net loss per common share were the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. Assets and Liabilities Held for Sale We consider assets to be held for sale when management approves and commits to a formal plan to actively market the asset for sale at a reasonable price in relation to its fair value, the asset is available for immediate sale in its present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, the sale of the asset is expected to be completed within one year and it is unlikely that significant changes will be made to the plan. Upon designation as held for sale, we record the carrying value of the assets at the lower of its carrying value or its estimated fair value, less costs to sell. We cease to record depreciation and amortization expense at the time of designation as held for sale. The carrying value of assets and liabilities held for sale were $227.8 million and $43.1 million as of June 30, 2017. We had no assets or liabilities held for sale as of December 31, 2016. Concentration of Credit Risk For the three and six months ended June 30, 2016 and 2017 , we had no customers that accounted for more than 10% of our total revenue. As of December 31, 2016 and June 30, 2017 , we had no customers that accounted for more than 10% of our total accounts receivable. Recently Issued Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which amends the existing accounting standards for revenue recognition. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue. Under the guidance, revenue is recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities with annual and interim reporting periods beginning after December 15, 2017. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. We expect to adopt ASU 2014-09 as of January 1, 2018 and have updated our planned adoption method to the modified retrospective method. We have completed our initial assessment and do not believe there will be a material impact to our condensed consolidated financial statements for the majority of our advertising and subscription revenue arrangements. We are currently continuing to evaluate the impact that the new principal versus agent guidance may have on certain of our advertising revenue arrangements and on our ticketing service revenue arrangements and we are continuing to evaluate the expected impact on our business processes, systems and controls. We expect to complete our assessment of the effects of adopting ASU 2014-09 during 2017, and we will continue our evaluation of ASU 2014-09, including how it may impact new arrangements we enter into as well as new or emerging interpretations of the standard, through the date of adoption. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to put most leases on their balance sheets but recognize expenses on their income statement and eliminates the real estate-specific provisions for all entities. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have completed our initial assessment and expect to adopt ASU 2016-02 as of January 1, 2019 using the modified retrospective method. We expect the potential impact of adopting ASU 2016-02 to be material to our lease liabilities and assets on our consolidated balance sheets. In May 2017, the FASB issued Accounting Standards Update No. 2017-09, Compensation—Stock Compensation (Topic 718), Scope of Modification Accounting ("ASU" 2017-09"). ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective prospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. We do not expect the adoption of ASU 2017-09 will have a material impact on our financial statements. Recently Adopted Accounting Standards In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718) ("ASU 2016-09"). ASU 2016-09 requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. Additionally, it allows an employer to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. We adopted this guidance in the first quarter of 2017 using the modified retrospective transition method. Upon adoption, we recognized the previously unrecognized excess tax benefits as of January 1, 2017 through retained earnings. The previously unrecognized excess tax benefits were recorded as a deferred tax asset, which was fully offset by a valuation allowance. As a result, the net impact resulted in no effect on net deferred tax assets or our accumulated deficit as of January 1, 2017. Without the valuation allowance, the Company’s net deferred tax assets would have increased by approximately $ 142.0 million. Additionally, we elected to account for forfeitures as they occur, rather than estimating expected forfeitures. The net cumulative effect of this change was an increase to additional paid in capital as of January 1, 2017 by $1.2 million . In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 eliminated the requirement to calculate the implied fair value of goodwill, which is step two of the previous goodwill impairment test, to measure a goodwill impairment charge. By eliminating step two of the goodwill impairment test, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The guidance is effective for calendar-year public business |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Cash, cash equivalents and investments consisted of the following: As of As of (in thousands) Cash and cash equivalents Cash $ 144,192 $ 148,057 Money market funds 55,752 61,524 Total cash and cash equivalents $ 199,944 $ 209,581 Short-term investments Corporate debt securities $ 37,109 $ 18,056 Total short-term investments $ 37,109 $ 18,056 Long-term investments Corporate debt securities $ 6,252 $ — Total long-term investments $ 6,252 $ — Cash, cash equivalents and investments $ 243,305 $ 227,637 Our short-term investments have maturities of twelve months or less and are classified as available-for-sale. Our long-term investments have maturities of greater than twelve months and are classified as available-for-sale. The following tables summarize our available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category as of December 31, 2016 and June 30, 2017 . As of December 31, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Money market funds $ 55,752 $ — $ — $ 55,752 Corporate debt securities 43,413 3 (55 ) 43,361 Total cash equivalents and marketable securities $ 99,165 $ 3 $ (55 ) $ 99,113 As of June 30, 2017 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Money market funds $ 61,524 $ — $ — $ 61,524 Corporate debt securities 18,066 (10 ) 18,056 Total cash equivalents and marketable securities $ 79,590 $ — $ (10 ) $ 79,580 The following table presents available-for-sale investments by contractual maturity date as of December 31, 2016 and June 30, 2017 . As of December 31, 2016 Adjusted Cost Fair Value (in thousands) Due in one year or less $ 92,914 $ 92,861 Due after one year through three years 6,251 6,252 Total $ 99,165 $ 99,113 As of June 30, 2017 Adjusted Cost Fair Value (in thousands) Due in one year or less $ 79,590 $ 79,580 Total $ 79,590 $ 79,580 The following tables summarize our available-for-sale securities’ fair value and gross unrealized losses aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2016 and June 30, 2017 . As of December 31, 2016 Twelve Months or Less More than Twelve Months Total Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses (in thousands) Corporate debt securities $ 34,257 $ (52 ) $ 4,099 $ (3 ) $ 38,356 $ (55 ) Total $ 34,257 $ (52 ) $ 4,099 $ (3 ) $ 38,356 $ (55 ) As of June 30, 2017 Twelve Months or Less More than Twelve Months Total Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses (in thousands) Corporate debt securities $ 18,056 $ (10 ) $ — $ — $ 18,056 $ (10 ) Total $ 18,056 $ (10 ) $ — $ — $ 18,056 $ (10 ) Our investment policy requires investments to be investment grade, primarily rated "A1" by Standard & Poor’s or "P1" by Moody’s or better for short-term investments and rated "A" by Standard & Poor’s or "A2" by Moody’s or better for long-term investments, with the objective of minimizing the potential risk of principal loss. In addition, the investment policy limits the amount of credit exposure to any one issuer. The unrealized losses on our available-for-sale securities as of June 30, 2017 were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. As of June 30, 2017 , we owned 12 securities that were in an unrealized loss position. Based on our cash flow needs, we may be required to sell a portion of these securities prior to maturity. However, we expect to recover the full carrying value of these securities. As a result, no portion of the unrealized losses at June 30, 2017 is deemed to be other-than-temporary and the unrealized losses are not deemed to be credit losses. When evaluating the investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and our intent to sell, or whether it is more likely than not we will be required to sell, the investment before recovery of the investment’s amortized cost basis. During the three and six months ended June 30, 2017 , we did no |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value We record cash equivalents and short-term investments at fair value. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are required to be disclosed by level within the following fair value hierarchy: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 — Inputs lack observable market data to corroborate management’s estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. When determining fair value, whenever possible we use observable market data and rely on unobservable inputs only when observable market data is not available. The following fair value hierarchy tables categorize information regarding our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and June 30, 2017 : As of December 31, 2016 Fair Value Measurement Using Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Total (in thousands) Assets Corporate debt securities $ — $ 43,361 $ 43,361 Total assets measured at fair value $ — $ 43,361 $ 43,361 As of June 30, 2017 Fair Value Measurement Using Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Total (in thousands) Assets Corporate debt securities $ — $ 18,056 $ 18,056 Total assets measured at fair value $ — $ 18,056 $ 18,056 Our other cash equivalents and short-term investments are classified as Level 2 within the fair value hierarchy because they are valued using professional pricing sources for identical or comparable instruments, rather than direct observations of quoted prices in active markets. As of December 31, 2016 and June 30, 2017 , we held no Level 3 assets or liabilities. Our money market funds are no longer classified within the fair value hierarchy, as the fair values are measured at net asset value using the practical expedient. As of December 31, 2016 and June 30, 2017 , the fair values of our money market funds were $55.8 million and $61.5 million . Refer to Note 8, "Debt Instruments," for the carrying amount and estimated fair value of our convertible senior notes, which are not recorded at fair value as of June 30, 2017 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Minimum Guarantees and Other Provisions—Content Acquisition Costs Certain of our content acquisition agreements contain minimum guarantees, and require that we make upfront minimum guarantee payments. During the three and six months ended June 30, 2017 , we prepaid $68.8 million and $145.8 million in content acquisition costs related to minimum guarantees, which were offset by amortization of prepaid content acquisition costs of $28.9 million and $105.9 million . As of June 30, 2017 , we have future minimum guarantee commitments of $617.2 million , of which $209.7 million will be paid in 2017 and the remainder will be paid thereafter. On a quarterly basis, we record the greater of the cumulative actual content acquisition costs incurred or the cumulative minimum guarantee based on forecasted usage for the minimum guarantee period. The minimum guarantee period is the period of time that the minimum guarantee relates to, as specified in each agreement, which may be annual or a longer period. The cumulative minimum guarantee, based on forecasted usage considers factors such as listening hours, revenue, subscribers and other terms of each agreement that impact our expected attainment or recoupment of the minimum guarantees based on the relative attribution method. Several of our content acquisition agreements also include provisions related to the royalty payments and structures of those agreements relative to other content licensing arrangements, which, if triggered, could cause our payments under those agreements to escalate. In addition, record labels, publishers and PROs with whom we have entered into direct license agreements have the right to audit our content acquisition payments, and any such audit could result in disputes over whether we have paid the proper content acquisition costs. However, as of June 30, 2017 , we do not believe it is probable that these provisions of our agreements discussed above will, individually or in the aggregate, have a material adverse effect on our business, financial position, results of operations or cash flows. Legal Proceedings We have been in the past, and continue to be, a party to various legal proceedings, which have consumed, and may continue to consume, financial and managerial resources. We record a liability when we believe that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Our management periodically evaluates developments that could affect the amount, if any, of liability that we have previously accrued and make adjustments as appropriate. Determining both the likelihood and the estimated amount of a loss requires significant judgment, and management’s judgment may be incorrect. We do not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on our business, financial position, results of operations or cash flows. Pre-1972 copyright litigation On October 2, 2014, Flo & Eddie Inc. filed a class action suit against Pandora Media Inc. in the federal district court for the Central District of California. The complaint alleges misappropriation and conversion in connection with the public performance of sound recordings recorded prior to February 15, 1972. On December 19, 2014, Pandora filed a motion to strike the complaint pursuant to California’s Anti-Strategic Lawsuit Against Public Participation ("Anti-SLAPP") statute, which was appealed to the Ninth Circuit Court of Appeals. The district court litigation is currently stayed pending the Ninth Circuit’s decision. On December 8, 2016, the Ninth Circuit heard oral argument on the Anti-SLAPP motion. On March 15, 2017, the Ninth Circuit requested certification to the California Supreme Court on the substantive legal questions. The California Supreme Court has accepted certification and opening briefs are due on August 4, 2017. Between September 14, 2015 and October 19, 2015, Arthur and Barbara Sheridan filed separate class action suits against the Company in the federal district courts for the Northern District of California, District of New Jersey and Northern District of Illinois. The complaints allege a variety of violations of common law and state copyright statutes, common law misappropriation, unfair competition, conversion, unjust enrichment and violation of rights of publicity arising from allegations that we owe royalties for the public performance of sound recordings recorded prior to February 15, 1972. The action in Illinois was dismissed by the court in June 2017. The actions in California and New Jersey are currently stayed pending the Ninth Circuit's decision in Flo & Eddie, Inc. v. Pandora Media, Inc . On September 7, 2016, Ponderosa Twins Plus One et al. filed a class action suit against the Company alleging claims similar to that of Flo & Eddie, Inc. v. Pandora Media Inc . The action is currently stayed in the Northern District of California pending the Ninth Circuit’s decision in Flo & Eddie, Inc. v. Pandora Media, Inc . The outcome of any litigation is inherently uncertain. Except as noted above, we do not believe it is probable that the final outcome of the matters discussed above will, individually or in the aggregate, have a material adverse effect on our business, financial position, results of operations or cash flows; however, in light of the uncertainties involved in such matters, there can be no assurance that the outcome of each case or the costs of litigation, regardless of outcome, will not have a material adverse effect on our business. Indemnification Agreements, Guarantees and Contingencies In the ordinary course of business, we are party to certain contractual agreements under which we may provide indemnifications of varying scope, terms and duration to customers, vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by us or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with directors and certain officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. Such indemnification provisions are accounted for in accordance with guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others. To date, we have not incurred, do not anticipate incurring and therefore have not accrued for, any costs related to such indemnification provisions. |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | Ticketfly In June 2017, we entered into an agreement to sell Ticketfly, our ticketing service segment, to Eventbrite, Inc. ("Eventbrite") for an estimated purchase price of $184.5 million , which includes an aggregate purchase price of $200.0 million , less estimated purchase price adjustments of $10.9 million for certain indemnification provisions and costs to sell of $4.6 million . The $200.0 million aggregate purchase price consists of $150.0 million in cash and $50.0 million in the form of a convertible subordinated promissory note (the "Note"), which are payable and issuable at the closing of the transaction. We expect the sale to be completed in the three months ending September 30, 2017. The purchase price is subject to customary adjustments for working capital and certain indemnification provisions. The Note will be due five years from its issuance date (the "Maturity Date") and will accrue interest at a rate of 6.5% per annum, payable quarterly in cash or stock for the first year, and in cash thereafter. Prior to the Maturity Date, the Note is convertible at the Company’s option into shares of Eventbrite’s common stock. As a result of the agreement, we met the requirements to classify the assets and liabilities of Ticketfly as held for sale in the three months ended June 30, 2017. During the three and six months ended June 30, 2017, we recognized goodwill impairment of $131.7 million for the Ticketfly assets held for sale, which was based on the fair value of these net assets as implied by the estimated purchase price of $184.5 million . We consider the fair value of the net assets to be classified as Level 2 within the fair value hierarchy because Ticketfly is not a publicly traded company. Instead, the fair value was based on other observable inputs, such as the selling price, which represents an exit price. The revenues and expenses of Ticketfly are included in our condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2017 . The following table provides Ticketfly's loss before provision for income taxes for the three and six months ended June 30, 2016 and 2017 : Three months ended Six months ended 2016 2017 2016 2017 (in thousands) Loss before benefit from (provision for) income taxes $ 8,230 $ 141,041 $ 15,851 $ 151,245 KXMZ In June 2017, we entered into a purchase agreement to sell KXMZ, an FM radio station based in Rapid City, South Dakota. As a result of the purchase agreement, we met the requirements to classify the assets and liabilities of KXMZ as held for sale in the three months ended June 30, 2017. This did not result in a material impact to our condensed consolidated financial statements. Assets and Liabilities Held for Sale The following table provides the carrying amounts of the major classes of assets and liabilities of Ticketfly and KXMZ included in held for sale in our Condensed Consolidated Balance Sheet as of June 30, 2017. As of June 30, 2017 Assets held for sale Cash and cash equivalents $ 25,583 Accounts receivable, net 5,625 Prepaid expenses and other current assets 10,293 Property and equipment, net 5,096 Goodwill 103,474 Intangible assets, net 57,932 Other long-term assets 19,841 Total assets held for sale $ 227,844 Liabilities held for sale Accounts payable, accrued liabilities and accrued compensation $ 5,637 Other current liabilities 28,758 Other long-term liabilities 8,664 Total liabilities held for sale $ 43,059 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets During the three and six months ended June 30, 2017, we entered into agreements to sell Ticketfly and KXMZ and met the requirements to classify the assets and liabilities of Ticketfly and KXMZ as held for sale. As a result of the Ticketfly agreement, we recognized a goodwill impairment of $131.7 million for the Ticketfly assets held for sale, which was based on the fair value of these net assets as implied by the estimated purchase price of $184.5 million , which includes an aggregate purchase price of $200.0 million , less estimated purchase price adjustments of $10.9 million for certain indemnification provisions and costs to sell of $4.6 million . As a result of the KXMZ agreement, we recognized a goodwill impairment of $0.3 million for the KXMZ assets held for sale, which was based on the fair value of these net assets as implied by the estimated purchase price. We performed goodwill impairment testing on our remaining goodwill, noting no additional impairment. The changes in the carrying amount of goodwill in each of our reporting segments for the six months ended June 30, 2017 , are as follows: Pandora Ticketfly Total (in thousands) Balance as of December 31, 2016 $ 71,650 $ 235,041 $ 306,691 Goodwill impairment (300 ) (131,697 ) (131,997 ) Goodwill classified as held for sale (107 ) (103,367 ) (103,474 ) Effect of currency translation adjustment — 23 23 Balance as of June 30, 2017 $ 71,243 $ — $ 71,243 The following summarizes information regarding the gross carrying amounts and accumulated amortization of intangible assets. As of December 31, 2016 As of June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Intangible Assets Held for Sale Net Carrying Value (in thousands) (in thousands) Finite-lived intangible assets Patents $ 8,030 $ (2,556 ) $ 5,474 $ 8,030 $ (2,923 ) $ — $ 5,107 Developed technology 56,162 (13,599 ) 42,563 56,162 (19,293 ) (19,235 ) 17,634 Customer relationships—clients 37,399 (5,487 ) 31,912 37,399 (7,449 ) (29,950 ) — Customer relationships—users 1,940 (1,288 ) 652 1,940 (1,732 ) (208 ) — Trade names 11,735 (2,104 ) 9,631 11,735 (2,895 ) (8,346 ) 494 Total finite-lived intangible assets $ 115,266 $ (25,034 ) $ 90,232 $ 115,266 $ (34,292 ) $ (57,739 ) $ 23,235 Indefinite-lived intangible assets FCC license - Broadcast Radio $ 193 $ — $ 193 $ 193 $ — $ (193 ) $ — Total intangible assets $ 115,459 $ (25,034 ) $ 90,425 $ 115,459 $ (34,292 ) $ (57,932 ) $ 23,235 Note: Amounts may not recalculate due to rounding Amortization expense of intangible assets was $5.1 million and $4.1 million for the three months ended June 30, 2016 and 2017 . Amortization expense of intangible assets was $10.3 million and $9.3 million for the six months ended June 30, 2016 and 2017 . The following is a schedule of future amortization expense related to finite-lived intangible assets as of June 30, 2017 . As of (in thousands) Remainder of 2017 $ 3,827 2018 6,066 2019 5,546 2020 5,251 2021 727 Thereafter 1,818 Total future amortization expense $ 23,235 |
Debt Instruments
Debt Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Instruments | Debt Instruments Long-term debt, net consisted of the following: As of December 31, As of June 30, 2016 2017 (in thousands) 1.75% convertible senior notes due 2020 $ 345,000 $ 345,000 Credit facility 90,000 90,000 Unamortized discount and deferred issuance costs (92,753 ) (82,843 ) Long-term debt, net $ 342,247 $ 352,157 Convertible Debt Offering On December 9, 2015, we completed an unregistered Rule 144A offering for the issuance of $345.0 million aggregate principal amount of our 1.75% Convertible Senior Notes due 2020 (the "Notes"). In connection with the issuance of the Notes, we entered into capped call transactions with the initial purchaser of the Notes and an additional financial institution ("capped call transactions"). The net proceeds from the sale of the Notes were approximately $336.5 million , after deducting the initial purchasers' fees and other estimated expenses. We used approximately $43.2 million of the net proceeds to pay the cost of the capped call transactions. The Notes are unsecured, senior obligations of Pandora, and interest is payable semi-annually at a rate of 1.75% per annum. The Notes will mature on December 1, 2020, unless earlier repurchased or redeemed by Pandora or converted in accordance with their terms prior to such date. Prior to July 1, 2020, the Notes are convertible at the option of holders only upon the occurrence of specified events or during certain periods as further described in Note 7 "Debt Instruments" in our Annual Report on Form 10-K for the year ended December 31, 2016; thereafter, until the second scheduled trading day prior to maturity, the Notes will be convertible at the option of holders at any time. The Notes were separated into debt and equity components and assigned a fair value. The value assigned to the debt component is the estimated fair value as of the issuance date of similar debt without the conversion feature. The difference between the cash proceeds and this estimated fair value represents the value which has been assigned to the equity component and recorded as a debt discount. The debt discount is being amortized using the effective interest method over the period from the date of issuance through the December 1, 2020 maturity date. The valuation of the Notes is further described in Note 7 "Debt Instruments" in our Annual Report on Form 10-K for the year ended December 31, 2016. The following table outlines the effective interest rate, contractually stated interest expense and costs related to the amortization of the discount for the Notes: Three months ended Six months ended 2016 2017 2016 2017 (in thousands except for effective interest rate) Effective interest rate 10.18 % 10.18 % 10.18 % 10.18 % Contractually stated interest expense $ 1,509 $ 1,493 $ 3,019 $ 3,002 Amortization of discount $ 4,503 $ 4,912 $ 8,938 $ 9,799 The total estimated fair value of the Notes as of June 30, 2017 was $331.9 million . The fair value was determined using a methodology that combines direct market observations with quantitative pricing models to generate evaluated prices. We consider the fair value of the Notes to be a Level 2 measurement due to the limited trading activity of the Notes. The closing price of our common stock was $8.92 on June 30, 2017 , which was less than the initial conversion price for the Notes of approximately $16.42 per share. As such, the if-converted value of the Notes was less than the principal amount of $345.0 million . Credit Facility We are party to a $120.0 million credit facility with a syndicate of financial institutions, which expires on September 12, 2018. In September 2016, we borrowed $90.0 million from the credit facility to enhance our working capital position. The amount borrowed is included in long-term debt on our balance sheet. Interest is payable quarterly at the applicable annual interest rate of 3.81% through September 2017. The applicable interest rate will be adjusted in September 2017. As of June 30, 2017 , we had $1.2 million in letters of credit outstanding and $28.8 million of available borrowing capacity under the credit facility. We are in compliance with all financial covenants associated with the credit facility as of June 30, 2017 . |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2017 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock In June 2017, we entered into an agreement with Sirius XM Radio, Inc. ("Sirius XM") to sell 480,000 shares of Series A redeemable convertible preferred stock ("Series A") for $1,000 per share, with gross proceeds of $480.0 million (the "Sirius XM Investment Agreement"). The Series A shares will be issued in two rounds: an initial closing of 172,500 shares for $172.5 million that occurred on June 9, 2017 upon signing the agreement with Sirius XM, and an additional closing of 307,500 shares for $307.5 million that is subject to antitrust clearance and other customary closing conditions. We expect the additional closing to occur in the fourth quarter of 2017. In the three and six months ended June 30, 2017 , total proceeds to the Company from the initial closing, net of preferred stock issuance costs of $13.9 million , were $158.6 million , exclusive of the termination fee paid to KKR Classic Investors L.P. ("KKR"), and certain related expenses, totaling $23.5 million as described below. Conversion Feature Holders of the Series A shares have the option, at any time after the additional closing, or if the Sirius XM Investment Agreement is terminated prior to the additional closing, the date of such termination, to convert their shares plus any accrued dividends into common stock. We have the right to settle the conversion in cash, common stock or a combination thereof. The conversion rate for the Series A is initially 95.2381 shares of common stock per each share of Series A, which is equivalent to an initial conversion price of approximately $10.50 per share of our common stock, and is subject to adjustment in certain circumstances. Dividends on the Series A will accrue on a daily basis, whether or not declared, and will be payable on a quarterly basis at a rate of 6% per year. We have the option to pay dividends in cash when authorized by the Board and declared by the Company or accumulate dividends in lieu of paying cash. Dividends accumulated in lieu of paying cash will continue to accrue and cumulate at rate of 6% per year. Redemption Feature Under certain circumstances, we will have the right to redeem the Series A on or after the date which is three years after the additional closing or, if the additional closing does not occur, the third anniversary of the initial closing. The Series A holders will have the right to require us to redeem the Series A on or after the date which is five years after the additional closing or, if the additional closing does not occur, the fifth anniversary of the initial closing. Any optional redemption of the Series A will be at a redemption price equal to 100% of the liquidation preference, plus accrued and unpaid dividends to, but excluding, the redemption date. We have the option to redeem the Series A in cash, common stock or a combination thereof. Fundamental Changes If certain fundamental changes involving the Company occur, including change in control or liquidation, the Series A will be redeemed subject to certain adjustments, as determined by the date of the fundamental change. The change in control amount is the greater of the redemption value of 100% of the liquidation preference, plus all accrued dividends unpaid through the fifth anniversary of the initial closing, assuming the shares would have remained outstanding through that date, or the price that common stockholders would receive if the Series A shares had been redeemed immediately prior to the announcement of the change in control. Recognition Since the redemption of the Series A is contingently or optionally redeemable and therefore not certain to occur, the Series A is not required to be classified as a liability under ASC 480, Distinguishing Liabilities from Equity . As the Series A is redeemable at the option of the holders and is redeemable in certain circumstances upon the occurrence of an event that is not solely within the Company's control, we have classified the Series A in the redeemable convertible preferred stock line item in our condensed consolidated balance sheets. We did not identify any embedded features that would require bifurcation from the equity-like host instrument. We have elected to recognize the Series A at the redemption value at each period end, and have recorded the issuance costs through retained earnings as a deemed preferred stock dividend. In addition, we have elected to account for the 6% dividend at the stated rate. As of June 30, 2017 (in thousands) Series A redeemable convertible preferred stock $ 172,500 Issuance costs (13,935 ) Accretion of issuance costs 13,935 Stock dividend payable to preferred stockholders 595 Redeemable convertible preferred stock $ 173,095 Contract Termination Fees In May 2017, we entered into an agreement to sell redeemable convertible preferred stock to KKR. In June 2017, in conjunction with the Series A, we terminated the previous contractual commitment to sell redeemable convertible preferred stock to KKR, which resulted in a contract termination fee and related legal and professional fees, totaling $23.5 million |
Stock-based Compensation Plans
Stock-based Compensation Plans and Awards | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Plans and Awards | Stock-based Compensation Plans and Awards ESPP The ESPP allows eligible employees to purchase shares of our common stock through payroll deductions of up to 15% of their eligible compensation. The ESPP provides for six -month offering periods, commencing in February and August of each year. We estimate the fair value of shares to be issued under the ESPP on the first day of the offering period using the Black-Scholes valuation model. The determination of the fair value is affected by our stock price on the first date of the offering period, as well as other assumptions including the risk-free interest rate, the estimated volatility of our stock price over the term of the offering period, the expected term of the offering period and the expected dividend rate. Stock-based compensation expense related to the ESPP is recognized on a straight-line basis over the offering period. Forfeitures are recognized as they occur. The following assumptions for the Black-Scholes option pricing model were used to determine the per-share fair value of shares to be granted under the ESPP: Three months ended June 30, Six months ended June 30, 2016 2017 2016 2017 Expected life (in years) 0.5 0.5 0.5 0.5 Risk-free interest rate 0.41% 0.65 % 0.24 - 0.41% 0.44 - 0.65% Expected volatility 41% 39 % 41 % 39 - 52% Expected dividend yield 0 % 0 % 0 % 0 % During the three months ended June 30, 2016 and 2017 , we withheld $2.2 million and $3.3 million in contributions from employees and recognized $0.7 million and $1.0 million of stock-based compensation expense related to the ESPP, respectively. During the six months ended June 30, 2016 and 2017 , we withheld $3.8 million and $6.1 million in contributions from employees and recognized $1.4 million and $1.9 million of stock-based compensation expense related to the ESPP, respectively. In the six months ended June 30, 2016 and 2017 , 611,348 and 547,765 shares of common stock were issued under the ESPP. There were no shares of common stock issued under the ESPP in the three months ended June 30, 2016 and 2017 . Employee Stock-Based Awards Our 2011 Equity Incentive Plan (the "2011 Plan") provides for the issuance of stock options, restricted stock units and other stock-based awards to our employees. The 2011 Plan is administered by the compensation committee of our board of directors. Stock options We measure stock-based compensation expense for stock options at the grant date fair value of the award and recognize expense on a straight-line basis over the requisite service period, which is generally the vesting period. We estimate the fair value of stock options using the Black-Scholes option-pricing model. During the three months ended June 30, 2016 and 2017 , we recorded stock-based compensation expense from stock options of approximately $2.3 million and $4.0 million . During the six months ended June 30, 2016 and 2017 , we recorded stock-based compensation expense from stock options of approximately $9.2 million and $5.9 million . The per-share fair value of each stock option was determined on the grant date using the Black-Scholes option pricing model using the following assumptions: Three months ended June 30, Six months ended June 30, 2016 2017 2016 2017 Expected life (in years) N/A 6.00 N/A 5.93 - 6.05 Risk-free interest rate N/A 1.92% N/A 1.92 - 2.18% Expected volatility N/A 61% N/A 61% Expected dividend yield N/A 0 % N/A 0 % There were no options granted in the three and six months ended June 30, 2016 . RSUs The fair value of RSUs is expensed ratably over the vesting period. RSUs typically have an initial annual cliff vest and then vest quarterly thereafter over the service period, which is generally three to four years . During the three months ended June 30, 2016 and 2017 , we recorded stock-based compensation expense from RSUs of approximately $28.1 million and $33.4 million . During the six months ended June 30, 2016 and 2017 , we recorded stock-based compensation expense from RSUs of approximately $59.1 million and $58.8 million . MSUs In March 2015, the compensation committee of the board of directors granted performance awards consisting of market stock units to certain key executives under our 2011 Plan. MSUs granted in March 2015 are earned as a function of Pandora’s TSR performance measured against that of the Russell 2000 Index across three performance periods: • One-third of the target MSUs are eligible to be earned for a performance period that is the first calendar year of the MSU grant (the "One-Year Performance Period"); • One-third of the target MSUs are eligible to be earned for a performance period that is the first two calendar years of the MSU grant (the "Two-Year Performance Period"); and • Any remaining portion of the total potential MSUs are eligible to be earned for a performance period that is the entire three calendar years of the MSU grant (the "Three-Year Performance Period"). For each performance period, a "performance multiplier" is calculated by comparing Pandora’s TSR for the period to the Russell 2000 Index TSR for the same period, using the average adjusted closing stock price of Pandora stock, and the Russell 2000 Index, for ninety calendar days prior to the beginning of the performance period and the last ninety calendar days of the performance period. In each period, the target number of shares will vest if the Pandora TSR is equal to the Russell 2000 Index TSR. For each percentage point that the Pandora TSR falls below the Russell 2000 Index TSR for the period, the performance multiplier is decreased by three percentage points. The performance multiplier is capped at 100% for the One-Year and Two-Year Performance Periods. However, the full award is eligible for a payout up to 200% of target, less any shares earned in prior periods, in the Three-Year Performance Period. Specifically, for each percentage point that the Pandora TSR exceeds the Russell 2000 Index TSR for the Three -Year Performance Period, the performance multiplier is increased by 2% . As such, the ability to exceed the target number of shares is determined exclusively with respect to Pandora's three-year TSR during the term of the award. We have determined the grant-date fair value of the MSUs using a Monte Carlo simulation performed by a third-party valuation firm. We recognize stock-based compensation for the MSUs over the requisite service period, which is approximately three years, using the accelerated attribution method. There were no MSUs granted in the three or six months ended June 30, 2016 or 2017 . During the three months ended June 30, 2016 , we recorded approximately $0.2 million in stock-based compensation expense from MSUs. During the three months ended June 30, 2017, we recorded a credit to stock-based compensation expense from MSUs of approximately $0.1 million as a result of executive terminations. During the six months ended June 30, 2016 and 2017 , we recorded stock-based compensation expense from MSUs of approximately $0.4 million and $0.2 million . In February 2016 and January 2017, the compensation committee of the board of directors certified the results of the One-Year Performance Period and Two-Year Performance Period of the 2015 MSU grant, which concluded December 31, 2015 and 2016. During the One-Year Performance Period, our relative TSR declined 26 percentage points relative to the Russell 2000 Index TSR for the period, which resulted in the vesting of the One-Year Performance Period at 22% of the one-third vesting opportunity for the period. During the Two-Year Performance Period, our relative TSR declined 48 percentage points relative to the Russell 2000 Index TSR for the period, which resulted in vesting of the Two-Year Performance Period at 0% of the one-third vesting opportunity for the period. PSUs In April and October 2016, the compensation committee of the board of directors granted 2016 Performance Awards consisting of stock-settled performance-based RSUs to certain key executives under our 2011 Plan. PSUs granted in April and October 2016 have a vesting period that includes a four -year service period, during which one fourth of the awards will vest after one year and the remainder will vest quarterly thereafter. The PSUs are earned when our trailing average ninety -day stock price is equal to or greater than $20.00 . If the trailing average ninety -day stock price does not equal or exceed $20.00 on the applicable vesting date, then the portion of the award that was scheduled to vest on such vesting date shall not vest but shall vest on the next vesting date on which the trailing average ninety -day stock price equals or exceeds $20.00 . Any portion of the award that remains unvested as of the final vesting date shall be canceled and forfeited. We have determined the grant-date fair value of the PSUs granted in April and October 2016 using a Monte Carlo simulation performed by a third-party valuation firm. We recognize stock-based compensation for the PSUs over the requisite service period, which is approximately four years, using the accelerated attribution method. During the three and six months ended June 30, 2016 we granted 1,725,000 PSUs at a total grant-date fair value of $8.7 million . There were no PSUs granted in the three or six months ended June 30, 2017 . During the three months ended June 30, 2016 and 2017 , we recorded stock-based compensation expense from PSUs of approximately $1.1 million and $0.3 million . During the six months ended June 30, 2016 and 2017 , we recorded stock-based compensation expense from PSUs of approximately $1.1 million and $1.4 million . Stock-based Compensation Expense Stock-based compensation expense related to all employee and non-employee stock-based awards was as follows: Three months ended Six months ended June 30, 2016 2017 2016 2017 (in thousands) (in thousands) Stock-based compensation expense Cost of revenue—Other $ 1,544 $ 814 $ 3,021 $ 1,629 Cost of revenue—Ticketing service 67 34 127 63 Product development 7,243 9,422 15,744 17,337 Sales and marketing 15,128 15,102 28,741 28,598 General and administrative 8,450 13,236 23,454 20,599 Total stock-based compensation expense $ 32,432 $ 38,608 $ 71,087 $ 68,226 In the six months ended June 30, 2016 and three and six months ended June 30, 2017 , we recorded stock-based compensation expense of $6.8 million and $5.4 million |
Net Loss Per Common Share
Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units, market stock units, performance-based RSUs and instruments convertible into common stock, to the extent dilutive. Basic and diluted net loss per common share were the same for the three and six months ended June 30, 2016 and 2017 , as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table sets forth the computation of historical basic and diluted net loss per common share: Three months ended June 30, Six months ended June 30, 2016 2017 2016 2017 (in thousands except per share amounts) (in thousands except per share amounts) Numerator Net loss $ (76,333 ) $ (275,136 ) $ (191,435 ) $ (407,403 ) Less: Stock dividend payable to preferred stockholders — (14,528 ) — (14,528 ) Net loss available to common stockholders (76,333 ) (289,664 ) (191,435 ) (421,931 ) Denominator Weighted-average basic and diluted common shares 229,745 241,320 228,202 239,428 Net loss per common share, basic and diluted $ (0.33 ) $ (1.20 ) $ (0.84 ) $ (1.76 ) The following potential common shares outstanding were excluded from the computation of diluted net loss per common share because including them would have been anti-dilutive: As of June 30, 2016 2017 (in thousands) Options to purchase common stock 10,027 9,384 Restricted stock units 23,906 21,739 Performance awards* 2,416 1,993 Shares issuable pursuant to the ESPP 720 589 Total common stock equivalents 37,069 33,705 *Includes potential common shares outstanding for MSUs and PSUs On June 9, 2017, we entered into an agreement with Sirius XM to sell 480,000 shares of Series A, of which 172,500 shares were issued in the three months ended June 30, 2017. Under the treasury stock method, the Series A will generally have a dilutive impact on earnings per share if our average stock price for the period exceeds approximately $10.50 per share of our common stock, the conversion price of the Series A. For the period from the issuance of the offering through June 30, 2017 , the conversion feature of the Series A was anti-dilutive, as our average stock price was less than the conversion price. On December 9, 2015, we completed an offering of our 1.75% convertible senior notes due 2020. Under the treasury stock method, the Notes will generally have a dilutive impact on earnings per share if our average stock price for the period exceeds approximately $16.42 per share of our common stock, the conversion price of the Notes. For the period from the issuance of the offering of the Notes through June 30, 2017 , the conversion feature of the Notes was anti-dilutive, as our average stock price was less than the conversion price. |
Segment Data and Revenue by Geo
Segment Data and Revenue by Geographic Area | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Data and Revenue by Geographic Area | Segment Data and Revenue by Geographic Area Segment Data Our two operating segments, which are the same as our two reportable segments, are as follows: Pandora—Internet radio and on-demand music services Pandora is the world’s most powerful music discovery platform, offering a personalized experience for each of our listeners wherever and whenever they want to listen to music—whether through earbuds, car speakers or home audio/video equipment. Pandora is available as an ad-supported service, a radio subscription service called Pandora Plus and an on-demand subscription service called Pandora Premium. The majority of our listener hours occur on mobile devices, with the majority of our revenue generated from advertising on our ad-supported service on these devices. We offer both local and national advertisers the opportunity to deliver targeted messages to our listeners using a combination of audio, display and video advertisements. We also generate revenue from subscriptions to Pandora Plus and Pandora Premium. Ticketing service We operate our ticketing service through our subsidiary Ticketfly, a leading live events technology company that provides ticketing and marketing software and services for clients, which are venues and event promoters, across North America. Ticketfly's ticketing, digital marketing and analytics software helps promoters book talent, sell tickets and drive in-venue revenue, while Ticketfly's consumer tools help fans find and purchase tickets to events. Tickets are primarily sold through the Ticketfly platform but are also sold through other channels such as box offices. The measurement basis of segment profit or loss is gross profit, as operating expenses and working capital are all managed on an aggregate basis. Total segment assets have not been presented as segment assets are not reported to, used by management to allocate resources to or used to assess performance of the segments. In June 2017, we entered into an agreement to sell Ticketfly. Refer to Note 6 "Assets Held for Sale" in the Notes to Condensed Consolidated Financial Statements for further details on the Ticketfly disposition. The following table provides the financial performance of our reportable segments, including a reconciliation of gross profit from segment operations to gross profit from total operations: Three months ended June 30, 2016 2017 Pandora Ticketfly Total Pandora Ticketfly Total (in thousands) (in thousands) Revenues $ 320,251 $ 22,771 $ 343,022 $ 347,104 $ 29,730 $ 376,834 Cost of revenues 201,739 15,259 216,998 223,315 20,510 243,825 Gross profit $ 118,512 $ 7,512 $ 126,024 $ 123,789 $ 9,220 $ 133,009 Operating and other expenses (202,357 ) (408,145 ) Net loss $ (76,333 ) $ (275,136 ) Six months ended June 30, 2016 2017 Pandora Ticketfly Total Pandora Ticketfly Total (in thousands) (in thousands) Revenues $ 595,291 $ 45,036 $ 640,327 $ 635,290 $ 57,548 $ 692,838 Cost of revenues 394,198 29,905 424,103 436,267 39,128 475,395 Gross profit $ 201,093 $ 15,131 $ 216,224 $ 199,023 $ 18,420 $ 217,443 Operating and other expenses (407,659 ) (624,846 ) Net loss $ (191,435 ) $ (407,403 ) The following table provides depreciation and amortization costs included in costs of revenues by segment included in the consolidated statements of operations. We did not record depreciation and amortization expense of long-term assets related to the Ticketfly segment in June 2017, subsequent to the date that the related assets qualified as held for sale. Three months ended June 30, 2016 2017 Pandora Ticketfly Total Pandora Ticketfly Total (in thousands) (in thousands) Depreciation and amortization $ 2,432 $ 1,435 $ 3,867 $ 5,763 $ 951 $ 6,714 Six months ended June 30, 2016 2017 Pandora Ticketfly Total Pandora Ticketfly Total (in thousands) (in thousands) Depreciation and amortization $ 4,578 $ 2,868 $ 7,446 $ 9,110 $ 2,381 $ 11,491 Revenue by Geographic Area The following table sets forth revenue by geographic area: Three months ended June 30, Six months ended June 30, 2016 2017 2016 2017 (in thousands) (in thousands) Revenue by geographic area United States $ 337,363 $ 372,807 $ 630,623 $ 684,102 International 5,659 4,027 9,704 8,736 Total revenue $ 343,022 $ 376,834 $ 640,327 $ 692,838 No individual foreign country represented a material portion of our consolidated revenue during the three and six months ended June 30, 2016 and 2017 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Reduction in Force On January 12, 2017, we announced a reduction in force plan affecting approximately 7% of our U.S. employee base, excluding Ticketfly. In the six months ended June 30, 2017, we incurred approximately $6.0 million of cash expenditures, substantially all of which are related to employee severance and benefits costs. In the six months ended June 30, 2017, total reduction in force expenses were $5.6 million , which was lower than cash reduction in force costs due to a credit related to non-cash stock-based compensation expense reversals for unvested equity awards. The reduction in force plan was completed and all amounts were paid in the six months ended June 30, 2017. Australia and New Zealand Exit Costs On June 27, 2017, we announced a plan to discontinue business activities in Australia and New Zealand. The related restructuring charges in the three months ended June 30, 2017 relate primarily to a reduction of headcount of approximately 50 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X, and include the accounts of Pandora and our wholly owned subsidiaries. |
Consolidation | All intercompany balances and transactions have been eliminated in consolidation. In the opinion of our management, the interim unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial position for the periods presented. These interim unaudited condensed consolidated financial statements are not necessarily indicative of the results expected for the full fiscal year or for any subsequent period and should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2016. |
Reclassification | Certain changes in presentation have been made to conform the prior period presentation to current period reporting. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Estimates are used in several areas including, but not limited to determining accrued content acquisition costs, amortization of minimum guarantees under content acquisition agreements, selling prices for elements sold in multiple-element arrangements, the allowance for doubtful accounts, the fair value of stock options, market stock units ("MSUs"), stock-settled performance-based restricted stock units ("PSUs"), the Employee Stock Purchase Plan ("ESPP"), the benefit from (provision for) income taxes, the fair value of convertible debt, the fair value of acquired property and equipment, intangible assets and goodwill and the useful lives of acquired intangible assets. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our financial statements could be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by U.S. GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting among available alternatives would not produce a materially different result. |
Stock-Based Compensation—Restricted Stock Units and Stock Options | Stock-based awards granted to employees, including grants of restricted stock units ("RSUs") and stock options, are recognized as expense in our statements of operations based on their grant date fair value. We recognize stock-based compensation expense on a straight-line basis over the service period of the award, which is generally three to four years. We estimate the fair value of RSUs at our stock price on the grant date. We generally estimate the grant date fair value of stock options using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model is affected by our stock price on the date of grant, the expected stock price volatility over the expected term of the award, which is based on projected employee stock option exercise behaviors, the risk-free interest rate for the expected term of the award and expected dividends. Stock-based compensation expense is recorded in the statement of operations for only those stock-based awards that will vest. In the first quarter of 2017 we adopted new accounting guidance from the Financial Accounting Standards Board ("FASB") on stock compensation, or ASU 2016-09, as described in "Recently Adopted Accounting Standards" below and have elected to account for forfeitures as they occur, rather than estimating expected forfeitures. |
Net Loss per Common Share | Basic net loss per common share is computed by dividing the net loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units, market stock units, performance-based RSUs and instruments convertible into common stock, to the extent dilutive. Basic and diluted net loss per common share were the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. |
Assets and Liabilities Held for Sale | We consider assets to be held for sale when management approves and commits to a formal plan to actively market the asset for sale at a reasonable price in relation to its fair value, the asset is available for immediate sale in its present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, the sale of the asset is expected to be completed within one year and it is unlikely that significant changes will be made to the plan. Upon designation as held for sale, we record the carrying value of the assets at the lower of its carrying value or its estimated fair value, less costs to sell. We cease to record depreciation and amortization expense at the time of designation as held for sale. |
Concentration of Credit Risk | For the three and six months ended June 30, 2016 and 2017 , we had no customers that accounted for more than 10% of our total revenue. As of December 31, 2016 and June 30, 2017 , we had no |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which amends the existing accounting standards for revenue recognition. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue. Under the guidance, revenue is recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities with annual and interim reporting periods beginning after December 15, 2017. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. We expect to adopt ASU 2014-09 as of January 1, 2018 and have updated our planned adoption method to the modified retrospective method. We have completed our initial assessment and do not believe there will be a material impact to our condensed consolidated financial statements for the majority of our advertising and subscription revenue arrangements. We are currently continuing to evaluate the impact that the new principal versus agent guidance may have on certain of our advertising revenue arrangements and on our ticketing service revenue arrangements and we are continuing to evaluate the expected impact on our business processes, systems and controls. We expect to complete our assessment of the effects of adopting ASU 2014-09 during 2017, and we will continue our evaluation of ASU 2014-09, including how it may impact new arrangements we enter into as well as new or emerging interpretations of the standard, through the date of adoption. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to put most leases on their balance sheets but recognize expenses on their income statement and eliminates the real estate-specific provisions for all entities. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have completed our initial assessment and expect to adopt ASU 2016-02 as of January 1, 2019 using the modified retrospective method. We expect the potential impact of adopting ASU 2016-02 to be material to our lease liabilities and assets on our consolidated balance sheets. In May 2017, the FASB issued Accounting Standards Update No. 2017-09, Compensation—Stock Compensation (Topic 718), Scope of Modification Accounting ("ASU" 2017-09"). ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective prospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. We do not expect the adoption of ASU 2017-09 will have a material impact on our financial statements. Recently Adopted Accounting Standards In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718) ("ASU 2016-09"). ASU 2016-09 requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. Additionally, it allows an employer to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. We adopted this guidance in the first quarter of 2017 using the modified retrospective transition method. Upon adoption, we recognized the previously unrecognized excess tax benefits as of January 1, 2017 through retained earnings. The previously unrecognized excess tax benefits were recorded as a deferred tax asset, which was fully offset by a valuation allowance. As a result, the net impact resulted in no effect on net deferred tax assets or our accumulated deficit as of January 1, 2017. Without the valuation allowance, the Company’s net deferred tax assets would have increased by approximately $ 142.0 million. Additionally, we elected to account for forfeitures as they occur, rather than estimating expected forfeitures. The net cumulative effect of this change was an increase to additional paid in capital as of January 1, 2017 by $1.2 million . In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 eliminated the requirement to calculate the implied fair value of goodwill, which is step two of the previous goodwill impairment test, to measure a goodwill impairment charge. By eliminating step two of the goodwill impairment test, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The guidance is effective for calendar-year public business |
Commitments and Contingencies | We record a liability when we believe that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Our management periodically evaluates developments that could affect the amount, if any, of liability that we have previously accrued and make adjustments as appropriate. Determining both the likelihood and the estimated amount of a loss requires significant judgment, and management’s judgment may be incorrect. |
Cash, Cash Equivalents and In21
Cash, Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash, cash equivalents and investments | Cash, cash equivalents and investments consisted of the following: As of As of (in thousands) Cash and cash equivalents Cash $ 144,192 $ 148,057 Money market funds 55,752 61,524 Total cash and cash equivalents $ 199,944 $ 209,581 Short-term investments Corporate debt securities $ 37,109 $ 18,056 Total short-term investments $ 37,109 $ 18,056 Long-term investments Corporate debt securities $ 6,252 $ — Total long-term investments $ 6,252 $ — Cash, cash equivalents and investments $ 243,305 $ 227,637 |
Summary of available-for-sale securities' adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category | The following tables summarize our available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category as of December 31, 2016 and June 30, 2017 . As of December 31, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Money market funds $ 55,752 $ — $ — $ 55,752 Corporate debt securities 43,413 3 (55 ) 43,361 Total cash equivalents and marketable securities $ 99,165 $ 3 $ (55 ) $ 99,113 As of June 30, 2017 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Money market funds $ 61,524 $ — $ — $ 61,524 Corporate debt securities 18,066 (10 ) 18,056 Total cash equivalents and marketable securities $ 79,590 $ — $ (10 ) $ 79,580 |
Schedule of available-for-sale investments by contractual maturity date | The following table presents available-for-sale investments by contractual maturity date as of December 31, 2016 and June 30, 2017 . As of December 31, 2016 Adjusted Cost Fair Value (in thousands) Due in one year or less $ 92,914 $ 92,861 Due after one year through three years 6,251 6,252 Total $ 99,165 $ 99,113 As of June 30, 2017 Adjusted Cost Fair Value (in thousands) Due in one year or less $ 79,590 $ 79,580 Total $ 79,590 $ 79,580 |
Summary of available-for-sale securities' fair value and gross unrealized losses | The following tables summarize our available-for-sale securities’ fair value and gross unrealized losses aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2016 and June 30, 2017 . As of December 31, 2016 Twelve Months or Less More than Twelve Months Total Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses (in thousands) Corporate debt securities $ 34,257 $ (52 ) $ 4,099 $ (3 ) $ 38,356 $ (55 ) Total $ 34,257 $ (52 ) $ 4,099 $ (3 ) $ 38,356 $ (55 ) As of June 30, 2017 Twelve Months or Less More than Twelve Months Total Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses (in thousands) Corporate debt securities $ 18,056 $ (10 ) $ — $ — $ 18,056 $ (10 ) Total $ 18,056 $ (10 ) $ — $ — $ 18,056 $ (10 ) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial assets and liabilities inputs | December 31, 2016 and June 30, 2017 : As of December 31, 2016 Fair Value Measurement Using Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Total (in thousands) Assets Corporate debt securities $ — $ 43,361 $ 43,361 Total assets measured at fair value $ — $ 43,361 $ 43,361 As of June 30, 2017 Fair Value Measurement Using Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Total (in thousands) Assets Corporate debt securities $ — $ 18,056 $ 18,056 Total assets measured at fair value $ — $ 18,056 $ 18,056 |
Assets and Liabilities Held f23
Assets and Liabilities Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of information on assets held for sale | The following table provides Ticketfly's loss before provision for income taxes for the three and six months ended June 30, 2016 and 2017 : Three months ended Six months ended 2016 2017 2016 2017 (in thousands) Loss before benefit from (provision for) income taxes $ 8,230 $ 141,041 $ 15,851 $ 151,245 As of June 30, 2017 Assets held for sale Cash and cash equivalents $ 25,583 Accounts receivable, net 5,625 Prepaid expenses and other current assets 10,293 Property and equipment, net 5,096 Goodwill 103,474 Intangible assets, net 57,932 Other long-term assets 19,841 Total assets held for sale $ 227,844 Liabilities held for sale Accounts payable, accrued liabilities and accrued compensation $ 5,637 Other current liabilities 28,758 Other long-term liabilities 8,664 Total liabilities held for sale $ 43,059 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill in each of our reporting segments for the six months ended June 30, 2017 , are as follows: Pandora Ticketfly Total (in thousands) Balance as of December 31, 2016 $ 71,650 $ 235,041 $ 306,691 Goodwill impairment (300 ) (131,697 ) (131,997 ) Goodwill classified as held for sale (107 ) (103,367 ) (103,474 ) Effect of currency translation adjustment — 23 23 Balance as of June 30, 2017 $ 71,243 $ — $ 71,243 |
Summary of gross carrying amounts and accumulated amortization of intangible assets - finite lived | The following summarizes information regarding the gross carrying amounts and accumulated amortization of intangible assets. As of December 31, 2016 As of June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Intangible Assets Held for Sale Net Carrying Value (in thousands) (in thousands) Finite-lived intangible assets Patents $ 8,030 $ (2,556 ) $ 5,474 $ 8,030 $ (2,923 ) $ — $ 5,107 Developed technology 56,162 (13,599 ) 42,563 56,162 (19,293 ) (19,235 ) 17,634 Customer relationships—clients 37,399 (5,487 ) 31,912 37,399 (7,449 ) (29,950 ) — Customer relationships—users 1,940 (1,288 ) 652 1,940 (1,732 ) (208 ) — Trade names 11,735 (2,104 ) 9,631 11,735 (2,895 ) (8,346 ) 494 Total finite-lived intangible assets $ 115,266 $ (25,034 ) $ 90,232 $ 115,266 $ (34,292 ) $ (57,739 ) $ 23,235 Indefinite-lived intangible assets FCC license - Broadcast Radio $ 193 $ — $ 193 $ 193 $ — $ (193 ) $ — Total intangible assets $ 115,459 $ (25,034 ) $ 90,425 $ 115,459 $ (34,292 ) $ (57,932 ) $ 23,235 Note: Amounts may not recalculate due to rounding |
Summary of gross carrying amounts of intangible assets - indefinite lived | The following summarizes information regarding the gross carrying amounts and accumulated amortization of intangible assets. As of December 31, 2016 As of June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Intangible Assets Held for Sale Net Carrying Value (in thousands) (in thousands) Finite-lived intangible assets Patents $ 8,030 $ (2,556 ) $ 5,474 $ 8,030 $ (2,923 ) $ — $ 5,107 Developed technology 56,162 (13,599 ) 42,563 56,162 (19,293 ) (19,235 ) 17,634 Customer relationships—clients 37,399 (5,487 ) 31,912 37,399 (7,449 ) (29,950 ) — Customer relationships—users 1,940 (1,288 ) 652 1,940 (1,732 ) (208 ) — Trade names 11,735 (2,104 ) 9,631 11,735 (2,895 ) (8,346 ) 494 Total finite-lived intangible assets $ 115,266 $ (25,034 ) $ 90,232 $ 115,266 $ (34,292 ) $ (57,739 ) $ 23,235 Indefinite-lived intangible assets FCC license - Broadcast Radio $ 193 $ — $ 193 $ 193 $ — $ (193 ) $ — Total intangible assets $ 115,459 $ (25,034 ) $ 90,425 $ 115,459 $ (34,292 ) $ (57,932 ) $ 23,235 Note: Amounts may not recalculate due to rounding |
Schedule of future amortization expense related to finite-lived intangible assets | The following is a schedule of future amortization expense related to finite-lived intangible assets as of June 30, 2017 . As of (in thousands) Remainder of 2017 $ 3,827 2018 6,066 2019 5,546 2020 5,251 2021 727 Thereafter 1,818 Total future amortization expense $ 23,235 |
Debt Instruments (Tables)
Debt Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt, net consisted of the following: As of December 31, As of June 30, 2016 2017 (in thousands) 1.75% convertible senior notes due 2020 $ 345,000 $ 345,000 Credit facility 90,000 90,000 Unamortized discount and deferred issuance costs (92,753 ) (82,843 ) Long-term debt, net $ 342,247 $ 352,157 |
Summary of the effective interest rate, contractually stated interest expense and costs related to amortization of discount for the Notes | The following table outlines the effective interest rate, contractually stated interest expense and costs related to the amortization of the discount for the Notes: Three months ended Six months ended 2016 2017 2016 2017 (in thousands except for effective interest rate) Effective interest rate 10.18 % 10.18 % 10.18 % 10.18 % Contractually stated interest expense $ 1,509 $ 1,493 $ 3,019 $ 3,002 Amortization of discount $ 4,503 $ 4,912 $ 8,938 $ 9,799 |
Redeemable Convertible Prefer26
Redeemable Convertible Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Redeemable Convertible Preferred Stock | As of June 30, 2017 (in thousands) Series A redeemable convertible preferred stock $ 172,500 Issuance costs (13,935 ) Accretion of issuance costs 13,935 Stock dividend payable to preferred stockholders 595 Redeemable convertible preferred stock $ 173,095 |
Stock-based Compensation Plan27
Stock-based Compensation Plans and Awards (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of assumptions used for determining the per-share fair value of shares granted under the ESPP | The per-share fair value of each stock option was determined on the grant date using the Black-Scholes option pricing model using the following assumptions: Three months ended June 30, Six months ended June 30, 2016 2017 2016 2017 Expected life (in years) N/A 6.00 N/A 5.93 - 6.05 Risk-free interest rate N/A 1.92% N/A 1.92 - 2.18% Expected volatility N/A 61% N/A 61% Expected dividend yield N/A 0 % N/A 0 % Three months ended June 30, Six months ended June 30, 2016 2017 2016 2017 Expected life (in years) 0.5 0.5 0.5 0.5 Risk-free interest rate 0.41% 0.65 % 0.24 - 0.41% 0.44 - 0.65% Expected volatility 41% 39 % 41 % 39 - 52% Expected dividend yield 0 % 0 % 0 % 0 % |
Schedule of stock-based compensation expenses related to all employee and non-employee stock-based awards | Stock-based compensation expense related to all employee and non-employee stock-based awards was as follows: Three months ended Six months ended June 30, 2016 2017 2016 2017 (in thousands) (in thousands) Stock-based compensation expense Cost of revenue—Other $ 1,544 $ 814 $ 3,021 $ 1,629 Cost of revenue—Ticketing service 67 34 127 63 Product development 7,243 9,422 15,744 17,337 Sales and marketing 15,128 15,102 28,741 28,598 General and administrative 8,450 13,236 23,454 20,599 Total stock-based compensation expense $ 32,432 $ 38,608 $ 71,087 $ 68,226 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of the computation of historical basic and diluted net loss per share | The following table sets forth the computation of historical basic and diluted net loss per common share: Three months ended June 30, Six months ended June 30, 2016 2017 2016 2017 (in thousands except per share amounts) (in thousands except per share amounts) Numerator Net loss $ (76,333 ) $ (275,136 ) $ (191,435 ) $ (407,403 ) Less: Stock dividend payable to preferred stockholders — (14,528 ) — (14,528 ) Net loss available to common stockholders (76,333 ) (289,664 ) (191,435 ) (421,931 ) Denominator Weighted-average basic and diluted common shares 229,745 241,320 228,202 239,428 Net loss per common share, basic and diluted $ (0.33 ) $ (1.20 ) $ (0.84 ) $ (1.76 ) |
Schedule of potential common shares outstanding excluded from the computation of diluted net loss per share | The following potential common shares outstanding were excluded from the computation of diluted net loss per common share because including them would have been anti-dilutive: As of June 30, 2016 2017 (in thousands) Options to purchase common stock 10,027 9,384 Restricted stock units 23,906 21,739 Performance awards* 2,416 1,993 Shares issuable pursuant to the ESPP 720 589 Total common stock equivalents 37,069 33,705 *Includes potential common shares outstanding for MSUs and PSUs |
Segment Data and Revenue by G29
Segment Data and Revenue by Geographic Area (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments Information | The following table provides the financial performance of our reportable segments, including a reconciliation of gross profit from segment operations to gross profit from total operations: Three months ended June 30, 2016 2017 Pandora Ticketfly Total Pandora Ticketfly Total (in thousands) (in thousands) Revenues $ 320,251 $ 22,771 $ 343,022 $ 347,104 $ 29,730 $ 376,834 Cost of revenues 201,739 15,259 216,998 223,315 20,510 243,825 Gross profit $ 118,512 $ 7,512 $ 126,024 $ 123,789 $ 9,220 $ 133,009 Operating and other expenses (202,357 ) (408,145 ) Net loss $ (76,333 ) $ (275,136 ) Six months ended June 30, 2016 2017 Pandora Ticketfly Total Pandora Ticketfly Total (in thousands) (in thousands) Revenues $ 595,291 $ 45,036 $ 640,327 $ 635,290 $ 57,548 $ 692,838 Cost of revenues 394,198 29,905 424,103 436,267 39,128 475,395 Gross profit $ 201,093 $ 15,131 $ 216,224 $ 199,023 $ 18,420 $ 217,443 Operating and other expenses (407,659 ) (624,846 ) Net loss $ (191,435 ) $ (407,403 ) The following table provides depreciation and amortization costs included in costs of revenues by segment included in the consolidated statements of operations. We did not record depreciation and amortization expense of long-term assets related to the Ticketfly segment in June 2017, subsequent to the date that the related assets qualified as held for sale. Three months ended June 30, 2016 2017 Pandora Ticketfly Total Pandora Ticketfly Total (in thousands) (in thousands) Depreciation and amortization $ 2,432 $ 1,435 $ 3,867 $ 5,763 $ 951 $ 6,714 |
Revenue by Geographic Area | The following table sets forth revenue by geographic area: Three months ended June 30, Six months ended June 30, 2016 2017 2016 2017 (in thousands) (in thousands) Revenue by geographic area United States $ 337,363 $ 372,807 $ 630,623 $ 684,102 International 5,659 4,027 9,704 8,736 Total revenue $ 343,022 $ 376,834 $ 640,327 $ 692,838 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Assets held for sale | $ 227,844 | $ 0 | |
Liabilities held for sale | $ 43,059 | $ 0 | |
ASU 2016-09 | Additional Paid-in Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cumulative effect | $ 1,200 | ||
ASU 2016-09 | Pro Forma | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred tax asset | $ 142,000 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 4 years |
Cash, Cash Equivalents and In31
Cash, Cash Equivalents and Investments - Schedule of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Cash, Cash Equivalents and Investments | ||||
Cash and cash equivalents | $ 209,581 | $ 199,944 | $ 238,367 | $ 334,667 |
Short-term investments | 18,056 | 37,109 | ||
Long-term investments | 0 | 6,252 | ||
Cash, cash equivalents and investments | 227,637 | 243,305 | ||
Cash | ||||
Cash, Cash Equivalents and Investments | ||||
Cash and cash equivalents | 148,057 | 144,192 | ||
Money market funds | ||||
Cash, Cash Equivalents and Investments | ||||
Cash and cash equivalents | 61,524 | 55,752 | ||
Corporate debt securities | ||||
Cash, Cash Equivalents and Investments | ||||
Short-term investments | 18,056 | 37,109 | ||
Long-term investments | $ 0 | $ 6,252 |
Cash, Cash Equivalents and In32
Cash, Cash Equivalents and Investments - Summary of Available-for-sale Securities' Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value by Significant Investment Category (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | $ 79,590 | $ 99,165 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | (10) | (55) |
Fair Value | 79,580 | 99,113 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 61,524 | 55,752 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 61,524 | 55,752 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 18,066 | 43,413 |
Unrealized Gains | 3 | |
Unrealized Losses | (10) | (55) |
Fair Value | $ 18,056 | $ 43,361 |
Cash, Cash Equivalents and In33
Cash, Cash Equivalents and Investments - Schedule of Available-for-sale Investments by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Adjusted Cost | ||
Due in one year or less | $ 79,590 | $ 92,914 |
Due after one year through three years | 6,251 | |
Total | 79,590 | 99,165 |
Fair Value | ||
Due in one year or less | 79,580 | 92,861 |
Due after one year through three years | 6,252 | |
Total | $ 79,580 | $ 99,113 |
Cash, Cash Equivalents and In34
Cash, Cash Equivalents and Investments - Summary of Available-for-sale Securities' Fair Value and Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value | ||
Twelve Months or Less | $ 18,056 | $ 34,257 |
More than Twelve Months | 0 | 4,099 |
Total | 18,056 | 38,356 |
Gross Unrealized Losses | ||
Twelve Months or Less | (10) | (52) |
More than Twelve Months | 0 | (3) |
Total | (10) | (55) |
Corporate debt securities | ||
Fair Value | ||
Twelve Months or Less | 18,056 | 34,257 |
More than Twelve Months | 0 | 4,099 |
Total | 18,056 | 38,356 |
Gross Unrealized Losses | ||
Twelve Months or Less | (10) | (52) |
More than Twelve Months | 0 | (3) |
Total | $ (10) | $ (55) |
Cash, Cash Equivalents and In35
Cash, Cash Equivalents and Investments - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($)security | Jun. 30, 2017USD ($)security | |
Cash and Cash Equivalents [Abstract] | ||
Number of owned securities that were in an unrealized loss position | security | 12 | 12 |
Other-than-temporary investment losses | $ 0 | |
Unrealized losses deemed to be other-than-temporary, recognized | $ 0 | $ 0 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value of Financial Assets and Liabilities Inputs (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Total assets measured at fair value | $ 18,056 | $ 43,361 |
Corporate debt securities | ||
Assets: | ||
Total assets measured at fair value | 18,056 | 43,361 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Corporate debt securities | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets measured at fair value | 18,056 | 43,361 |
Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Assets: | ||
Total assets measured at fair value | $ 18,056 | $ 43,361 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Money market funds | Fair value measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 61,500,000 | $ 55,800,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Content acquisition costs | $ 68.8 | $ 145.8 |
Amortization of prepaid content acquisition costs | 28.9 | 105.9 |
Total future minimum guarantee payments | 617.2 | 617.2 |
Future minimum guarantee commitments to be paid this year | $ 209.7 | $ 209.7 |
Assets and Liabilities Held f39
Assets and Liabilities Held for Sale - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash portion of purchase price | $ 0 | $ 676 | |||
Goodwill impairment | $ 131,997 | $ 0 | $ 131,997 | $ 0 | |
Convertible subordinated promissory note | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maturity Date | 5 years | ||||
Interest rate | 6.50% | 6.50% | 6.50% | ||
Held for sale | Ticketfly | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Fair value of net assets | $ 184,500 | $ 184,500 | $ 184,500 | ||
Aggregate purchase price | 200,000 | ||||
Estimated purchase price adjustments | 10,900 | 10,900 | 10,900 | ||
Costs to sell | 4,600 | 4,600 | 4,600 | ||
Cash portion of purchase price | 150,000 | ||||
Convertible note receivable | $ 50,000 | ||||
Goodwill impairment | $ 131,700 | $ 131,700 |
Assets and Liabilities Held f40
Assets and Liabilities Held for Sale - Schedule of Information on Assets Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss before benefit from (provision for) income taxes | $ (274,859) | $ (77,877) | $ (406,792) | $ (192,558) | |
Assets held for sale | |||||
Cash and cash equivalents | 25,583 | 0 | 25,583 | 0 | |
Goodwill | 103,474 | 103,474 | |||
Total assets held for sale | 227,844 | 227,844 | $ 0 | ||
Liabilities held for sale | |||||
Total liabilities held for sale | 43,059 | 43,059 | $ 0 | ||
Ticketfly | Held for sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss before benefit from (provision for) income taxes | 141,041 | $ 8,230 | 151,245 | $ 15,851 | |
Ticketfly and KXMZ | Held for sale | |||||
Assets held for sale | |||||
Cash and cash equivalents | 25,583 | 25,583 | |||
Accounts receivable, net | 5,625 | 5,625 | |||
Prepaid expenses and other current assets | 10,293 | 10,293 | |||
Property and equipment, net | 5,096 | 5,096 | |||
Goodwill | 103,474 | 103,474 | |||
Intangible assets, net | 57,932 | 57,932 | |||
Other long-term assets | 19,841 | 19,841 | |||
Total assets held for sale | 227,844 | 227,844 | |||
Liabilities held for sale | |||||
Accounts payable, accrued liabilities and accrued compensation | 5,637 | 5,637 | |||
Other current liabilities | 28,758 | 28,758 | |||
Other long-term liabilities | 8,664 | 8,664 | |||
Total liabilities held for sale | $ 43,059 | $ 43,059 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Line Items] | |||||
Goodwill impairment | $ 131,997 | $ 0 | $ 131,997 | $ 0 | |
Amortization expense of intangible assets | 4,100 | $ 5,100 | 9,300 | $ 10,300 | |
Held for sale | Ticketfly | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 131,700 | 131,700 | |||
Fair value of net assets | $ 184,500 | 184,500 | 184,500 | ||
Aggregate purchase price | 200,000 | ||||
Estimated purchase price adjustments | 10,900 | 10,900 | 10,900 | ||
Costs to sell | $ 4,600 | 4,600 | $ 4,600 | ||
Held for sale | KXMZ | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | $ 300 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Balance as of December 31, 2016 | $ 306,691 | |||
Goodwill impairment | $ (131,997) | $ 0 | (131,997) | $ 0 |
Goodwill classified as held for sale | (103,474) | (103,474) | ||
Effect of currency translation adjustment | 23 | |||
Balance as of June 30, 2017 | 71,243 | 71,243 | ||
Pandora | ||||
Segment Reporting Information [Line Items] | ||||
Balance as of December 31, 2016 | 71,650 | |||
Goodwill impairment | (300) | |||
Goodwill classified as held for sale | (107) | (107) | ||
Effect of currency translation adjustment | 0 | |||
Balance as of June 30, 2017 | 71,243 | 71,243 | ||
Ticketfly | ||||
Segment Reporting Information [Line Items] | ||||
Balance as of December 31, 2016 | 235,041 | |||
Goodwill impairment | (131,697) | |||
Goodwill classified as held for sale | (103,367) | (103,367) | ||
Effect of currency translation adjustment | 23 | |||
Balance as of June 30, 2017 | $ 0 | $ 0 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Summary of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Finite-lived intangible assets | ||
Gross Carrying Amount | $ 115,266 | $ 115,266 |
Accumulated Amortization | (34,292) | (25,034) |
Intangible Assets Held for Sale, Finite lived | (57,739) | |
Net Carrying Value | 23,235 | 90,232 |
Total intangible assets, Gross Carrying Amount | 115,459 | 115,459 |
Total intangible assets, Accumulated Amortization | (34,292) | (25,034) |
Intangible Assets Held for Sale | (57,932) | |
Total intangible assets | 23,235 | 90,425 |
FCC license - Broadcast Radio | ||
Indefinite-lived intangible assets | ||
Net Carrying Value | 193 | 193 |
Intangible Assets Held for Sale, Indefinite-lived | (193) | |
Patents | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 8,030 | 8,030 |
Accumulated Amortization | (2,923) | (2,556) |
Intangible Assets Held for Sale, Finite lived | 0 | |
Net Carrying Value | 5,107 | 5,474 |
Total intangible assets, Accumulated Amortization | (2,923) | (2,556) |
Developed technology | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 56,162 | 56,162 |
Accumulated Amortization | (19,293) | (13,599) |
Intangible Assets Held for Sale, Finite lived | (19,235) | |
Net Carrying Value | 17,634 | 42,563 |
Total intangible assets, Accumulated Amortization | (19,293) | (13,599) |
Customer relationships—clients | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 37,399 | 37,399 |
Accumulated Amortization | (7,449) | (5,487) |
Intangible Assets Held for Sale, Finite lived | (29,950) | |
Net Carrying Value | 0 | 31,912 |
Total intangible assets, Accumulated Amortization | (7,449) | (5,487) |
Customer relationships—users | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 1,940 | 1,940 |
Accumulated Amortization | (1,732) | (1,288) |
Intangible Assets Held for Sale, Finite lived | (208) | |
Net Carrying Value | 0 | 652 |
Total intangible assets, Accumulated Amortization | (1,732) | (1,288) |
Trade names | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 11,735 | 11,735 |
Accumulated Amortization | (2,895) | (2,104) |
Intangible Assets Held for Sale, Finite lived | (8,346) | |
Net Carrying Value | 494 | 9,631 |
Total intangible assets, Accumulated Amortization | $ (2,895) | $ (2,104) |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Schedule of Future Amortization Expense Related to Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 3,827 | |
2,018 | 6,066 | |
2,019 | 5,546 | |
2,020 | 5,251 | |
2,021 | 727 | |
Thereafter | 1,818 | |
Net Carrying Value | $ 23,235 | $ 90,232 |
Debt Instruments - Schedule of
Debt Instruments - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 09, 2015 |
Debt Instrument [Line Items] | |||
Unamortized discount and deferred issuance costs | $ (82,843) | $ (92,753) | |
Long-term debt, net | 352,157 | 342,247 | |
Line of credit | |||
Debt Instrument [Line Items] | |||
Credit facility | $ 90,000 | 90,000 | |
Interest rate | 3.81% | ||
Convertible debt | 1.75% convertible senior notes due 2020 | |||
Debt Instrument [Line Items] | |||
1.75% convertible senior notes due 2020 | $ 345,000 | $ 345,000 | |
Interest rate | 1.75% | 1.75% |
Debt Instruments - Convertible
Debt Instruments - Convertible Debt Offering (Details) - USD ($) | Dec. 09, 2015 | Jun. 30, 2017 |
Debt Instruments | ||
Closing price of common stock (in dollars per share) | $ 8.92 | |
Convertible debt | Notes | ||
Debt Instruments | ||
Aggregate principal amount | $ 345,000,000 | |
Interest rate | 1.75% | 1.75% |
Net proceeds from sale of debt | $ 336,500,000 | |
Payments for capped call transactions | $ 43,200,000 | |
Debt instrument, conversion price (in dollars per share) | $ 16.42 | |
Value of debt | $ 331,900,000 |
Debt Instruments - Summary of t
Debt Instruments - Summary of the Effective Interest Rate, Contractually Stated Interest Expense and Costs Related to Amortization of Discount for the Notes (Details) - Convertible debt - Notes - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Effective interest rate | 10.18% | 10.18% | 10.18% | 10.18% |
Contractually stated interest expense | $ 1,493 | $ 1,509 | $ 3,002 | $ 3,019 |
Amortization of discount | $ 4,912 | $ 4,503 | $ 9,799 | $ 8,938 |
Debt Instruments - Credit Facil
Debt Instruments - Credit Facility (Details) - USD ($) | 1 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2017 | |
Line of credit | ||
Debt Instruments | ||
Maximum borrowings available | $ 120,000,000 | |
Credit facility | $ 90,000,000 | |
Interest rate | 3.81% | |
Available borrowing capacity | $ 28,800,000 | |
Letter of credit | ||
Debt Instruments | ||
Outstanding amount | $ 1,200,000 |
Redeemable Convertible Prefer49
Redeemable Convertible Preferred Stock - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | Jun. 09, 2017 | |
Temporary Equity [Line Items] | |||||||
Proceeds from issuance of redeemable convertible preferred stock | $ 172,500,000 | $ 0 | |||||
Contract termination fee | $ (23,500,000) | $ (23,467,000) | $ 0 | $ (23,467,000) | $ 0 | ||
Series A convertible preferred stock | |||||||
Temporary Equity [Line Items] | |||||||
Agreement to sell shares (in shares) | 480,000 | 480,000 | 480,000 | 480,000 | |||
Share price (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | ||||
Agreement to sell shares | $ 480,000,000 | $ 480,000,000 | $ 480,000,000 | ||||
Preferred stock issuance costs | 13,900,000 | 13,935,000 | |||||
Proceeds from issuance of redeemable convertible preferred stock | $ 158,600,000 | $ 158,600,000 | |||||
Shares conversion per share | 95.2381 | 95.2381 | 95.2381 | ||||
Conversion price (usd per share) | $ 10.50 | $ 10.50 | $ 10.50 | $ 10.50 | |||
Quarterly dividend rate, percentage | 6.00% | ||||||
Right to redeem, period | 3 years | ||||||
Holder right to redeem, period | 5 years | ||||||
Redemption percentage | 100.00% | ||||||
Series A convertible preferred stock | Initial closing | |||||||
Temporary Equity [Line Items] | |||||||
Agreement to sell shares (in shares) | 172,500 | 172,500 | 172,500 | ||||
Agreement to sell shares | $ 172,500,000 | $ 172,500,000 | $ 172,500,000 | ||||
Series A convertible preferred stock | Closing upon certain regulatory approvals | Forecast | |||||||
Temporary Equity [Line Items] | |||||||
Agreement to sell shares (in shares) | 307,500 | ||||||
Agreement to sell shares | $ 307,500,000 |
Redeemable Convertible Prefer50
Redeemable Convertible Preferred Stock - Schedule of Redeemable Convertible Preferred Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Temporary Equity [Line Items] | |||||
Accretion of issuance costs | $ 13,935,000 | $ 0 | |||
Stock dividend payable to preferred stockholders | $ 14,528,000 | $ 0 | 14,528,000 | $ 0 | |
Series A convertible preferred stock | |||||
Temporary Equity [Line Items] | |||||
Initial closing of redeemable convertible preferred stock | $ 172,500,000 | ||||
Series A redeemable convertible preferred stock | 480,000,000 | 480,000,000 | 480,000,000 | ||
Issuance costs | (13,900,000) | (13,935,000) | |||
Accretion of issuance costs | 13,935,000 | ||||
Stock dividend payable to preferred stockholders | 595,000 | ||||
Redeemable convertible preferred stock | $ 173,095,000 | $ 173,095,000 | $ 173,095,000 |
Stock-based Compensation Plan51
Stock-based Compensation Plans and Awards - ESPP narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 38,608 | $ 32,432 | $ 68,226 | $ 71,087 |
Employee stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of eligible compensation to purchase common stock through payroll deductions (as a percent) | 15.00% | 15.00% | ||
Offering period | 6 months | |||
Contributions from employees withheld | $ 3,300 | 2,200 | $ 6,100 | 3,800 |
Stock-based compensation expense | $ 1,000 | $ 700 | $ 1,900 | $ 1,400 |
Common stock issued (in shares) | 0 | 0 | 547,765 | 611,348 |
Stock-based Compensation Plan52
Stock-based Compensation Plans and Awards - Schedule of Assumptions Used for Determining the Per-Share Fair Value (Details) - Black Scholes Options Pricing Model | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 15 days | 15 days | 15 days | 15 days |
Risk-free interest rate | 0.65% | 0.41% | ||
Risk-free interest rate, minimum | 0.44% | 0.24% | ||
Risk-free interest rate, maximum | 0.65% | 0.41% | ||
Expected volatility | 39.00% | 41.00% | 41.00% | |
Expected volatility, minimum | 39.00% | |||
Expected volatility, maximum | 52.00% | |||
Expected dividend yield | 0.00% | 0.00% | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 6 years | |||
Risk-free interest rate | 1.92% | |||
Risk-free interest rate, minimum | 1.92% | |||
Risk-free interest rate, maximum | 2.18% | |||
Expected volatility | 61.00% | 61.00% | ||
Expected dividend yield | 0.00% | 0.00% | ||
Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 5 years 11 months 5 days | |||
Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 6 years 158 days |
Stock-based Compensation Plan53
Stock-based Compensation Plans and Awards - Stock options narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 38,608 | $ 32,432 | $ 68,226 | $ 71,087 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock issued (in shares) | 0 | 0 | ||
Stock-based compensation expense | $ 4,000 | $ 2,300 | $ 5,900 | $ 9,200 |
Stock-based Compensation Plan54
Stock-based Compensation Plans and Awards - RSUs Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 38,608 | $ 32,432 | $ 68,226 | $ 71,087 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 33,400 | $ 28,100 | $ 58,800 | $ 59,100 |
RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years |
Stock-based Compensation Plan55
Stock-based Compensation Plans and Awards - MSUs Narrative (Details) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2015performance_period | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($)shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 38,608 | $ 32,432 | $ 68,226 | $ 71,087 | ||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Requisite service period | 4 years | |||||
Market Stock Units (MSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of performance periods | performance_period | 3 | |||||
Requisite service period | 3 years | |||||
TSR prior to beginning of performance period | 90 days | |||||
TSR at end of performance period | 90 days | |||||
Performance multiplier, percentage point decrease | 3.00% | |||||
Grants in period (in shares) | shares | 0 | 0 | 0 | 0 | ||
Stock-based compensation expense | $ (100) | $ 200 | $ 200 | $ 400 | ||
Market Stock Units (MSUs) | One-Year Performance Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percent | 22.00% | 33.33% | ||||
TSR decline (percent) | 26.00% | |||||
Market Stock Units (MSUs) | Two-Year Performance Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percent | 0.00% | 33.33% | ||||
TSR decline (percent) | 48.00% | |||||
Market Stock Units (MSUs) | Three-Year Performance Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance multiplier, percentage point increase | 2.00% | |||||
Market Stock Units (MSUs) | Maximum | One-Year Performance Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance multiplier | 100.00% | |||||
Market Stock Units (MSUs) | Maximum | Two-Year Performance Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance multiplier | 100.00% | |||||
Market Stock Units (MSUs) | Maximum | Three-Year Performance Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance multiplier | 200.00% |
Stock-based Compensation Plan56
Stock-based Compensation Plans and Awards - PSUs Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 7 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 38,608 | $ 32,432 | $ 68,226 | $ 71,087 | |
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period | 3 years | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period | 4 years | ||||
Trailing average stock price period | 90 days | ||||
Grants in period (in shares) | 0 | 1,725,000 | 0 | 1,725,000,000 | |
Grant date fair value | $ 8,700 | $ 8,700 | |||
Stock-based compensation expense | $ 300 | $ 1,100 | $ 1,400 | $ 1,100 | |
PSUs | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
90 Day trailing stock price to vest (usd per share) | $ 20 | ||||
PSUs | One-Year Performance Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percent | 25.00% |
Stock-based Compensation Plan57
Stock-based Compensation Plans and Awards - Schedule of Stock-Based Compensation Expenses Related to All Employee and Non-employee Stock-based Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-based compensation expenses: | ||||
Total stock-based compensation expense | $ 38,608 | $ 32,432 | $ 68,226 | $ 71,087 |
Executive severance | ||||
Stock-based compensation expenses: | ||||
Total stock-based compensation expense | 5,400 | 5,400 | 6,800 | |
Cost of revenue—Other | ||||
Stock-based compensation expenses: | ||||
Total stock-based compensation expense | 814 | 1,544 | 1,629 | 3,021 |
Cost of revenue—Ticketing service | ||||
Stock-based compensation expenses: | ||||
Total stock-based compensation expense | 34 | 67 | 63 | 127 |
Product development | ||||
Stock-based compensation expenses: | ||||
Total stock-based compensation expense | 9,422 | 7,243 | 17,337 | 15,744 |
Sales and marketing | ||||
Stock-based compensation expenses: | ||||
Total stock-based compensation expense | 15,102 | 15,128 | 28,598 | 28,741 |
General and administrative | ||||
Stock-based compensation expenses: | ||||
Total stock-based compensation expense | $ 13,236 | $ 8,450 | $ 20,599 | $ 23,454 |
Net Loss Per Common Share - Sch
Net Loss Per Common Share - Schedule of the Computation of Historical Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator | ||||
Net loss | $ (275,136) | $ (76,333) | $ (407,403) | $ (191,435) |
Less: Stock dividend payable to preferred stockholders | (14,528) | 0 | (14,528) | 0 |
Net loss available to common stockholders | $ (289,664) | $ (76,333) | $ (421,931) | $ (191,435) |
Denominator | ||||
Weighted-average basic and diluted common shares | 241,320 | 229,745 | 239,428 | 228,202 |
Net loss per common share, basic and diluted (in dollars per share) | $ (1.20) | $ (0.33) | $ (1.76) | $ (0.84) |
Net Loss Per Common Share - S59
Net Loss Per Common Share - Schedule of Potential Common Shares Outstanding Excluded from the Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Anti-dilutive securities | ||
Total common stock equivalents (in shares) | 33,705 | 37,069 |
Options to purchase common stock | ||
Anti-dilutive securities | ||
Total common stock equivalents (in shares) | 9,384 | 10,027 |
Restricted stock units | ||
Anti-dilutive securities | ||
Total common stock equivalents (in shares) | 21,739 | 23,906 |
Performance awards | ||
Anti-dilutive securities | ||
Total common stock equivalents (in shares) | 1,993 | 2,416 |
Employee stock | ||
Anti-dilutive securities | ||
Total common stock equivalents (in shares) | 589 | 720 |
Net Loss Per Common Share - Nar
Net Loss Per Common Share - Narrative (Details) - $ / shares | Jun. 30, 2017 | Jun. 09, 2017 | Dec. 09, 2015 |
1.75% convertible senior notes due 2020 | Convertible debt | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.75% | 1.75% | |
Debt instrument, conversion price (in dollars per share) | $ 16.42 | ||
Series A convertible preferred stock | |||
Debt Instrument [Line Items] | |||
Agreement to sell shares (in shares) | 480,000 | 480,000 | |
Debt instrument, conversion price (in dollars per share) | $ 10.50 | $ 10.50 | |
Initial closing | Series A convertible preferred stock | |||
Debt Instrument [Line Items] | |||
Agreement to sell shares (in shares) | 172,500 |
Segment Data and Revenue by G61
Segment Data and Revenue by Geographic Area - Narrative (Details) | 6 Months Ended |
Jun. 30, 2017segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Data and Revenue by G62
Segment Data and Revenue by Geographic Area - Schedule of Reportable Segments Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 376,834 | $ 343,022 | $ 692,838 | $ 640,327 |
Cost of revenues | 243,825 | 216,998 | 475,395 | 424,103 |
Gross profit | 133,009 | 126,024 | 217,443 | 216,224 |
Operating and other expenses | (408,145) | (202,357) | (624,846) | (407,659) |
Net loss | (275,136) | (76,333) | (407,403) | (191,435) |
Depreciation and amortization | 6,714 | 3,867 | 11,491 | 7,446 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 372,807 | 337,363 | 684,102 | 630,623 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,027 | 5,659 | 8,736 | 9,704 |
Pandora | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 347,104 | 320,251 | 635,290 | 595,291 |
Cost of revenues | 223,315 | 201,739 | 436,267 | 394,198 |
Gross profit | 123,789 | 118,512 | 199,023 | 201,093 |
Depreciation and amortization | 5,763 | 2,432 | 9,110 | 4,578 |
Ticketfly | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 29,730 | 22,771 | 57,548 | 45,036 |
Cost of revenues | 20,510 | 15,259 | 39,128 | 29,905 |
Gross profit | 9,220 | 7,512 | 18,420 | 15,131 |
Depreciation and amortization | $ 951 | $ 1,435 | $ 2,381 | $ 2,868 |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Millions | Jun. 27, 2017employee | Jan. 12, 2017 | Jun. 30, 2017USD ($) |
Restructuring and Related Activities [Abstract] | |||
Reduction in force | 7.00% | ||
Restructuring Cost and Reserve [Line Items] | |||
Reduction of headcount, employees | employee | 50 | ||
Employee severance and benefits costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cash expenditures | $ 6 | ||
Total reduction in force expenses | $ 5.6 |