While Pandora has its five-year growth plan firmly in place, its costs are going up.
In fact, cash used in operating activities climbed to $71 million in the fourth quarter 2015, up from $25.1 million in the same period in 2014.
Officials acknowledged they’re spending more now, on content acquisition, licensing and the recent purchase of Rdio and Ticketfly to set-up the company for future growth. A settlement in the pre-1972 licensing case was also charged to 2015.
Pandora CFO Mike Herring said in an earnings call Late Thursday to expect content costs especially to grow to $116 million in 2016.
For the fourth quarter of 2015, consolidated total revenue was $336.2 million, a 25% year-over-year increase. Excluding revenue from ticketing services, total revenue was $326.0 million, an increase of 22% year-over-year. Advertising revenue was $269.0 million, a 22% year-over-year increase. Subscription and other revenue was $57 million, a 19% year-over-year increase.
For the full year 2015, consolidated total revenue was $1.164 billion, a 26% year-over-year increase on a GAAP basis and a 28% year-over-year increase on a non-GAAP basis. Excluding revenue from ticketing services, full year 2015 revenue was $1.154 billion or growth of 25% on a GAAP basis and 27% on a non-GAAP basis. Advertising revenue was $933.3 million, a 27% year-over-year increase. Subscription and other revenue was $220.6 million, a 17% year-over-year increase on a GAAP basis and a 27% year-over-year increase on a non-GAAP basis.
