This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Pandora Bucking Tech IPO Trend

NEW YORK ( TheStreet) -- Internet music player Pandora, which raised its IPO price Friday, is somewhat bucking the trend for companies on both sides of the IPO launchpad that feature weak balance sheets, such as Fusion-io (FIO), Groupon and LinkedIn (LNKD - Get Report) .

"This IPO is showing extremely strong topline growth, especially in the advertising area, and decreasing losses, with a strong balance sheet," Scott Sweet, senior managing partner at research firm IPOBoutique, told TheStreet. "There is also no debt to speak of, that's worthwhile."

With anticipation growing ahead of the company's IPO next week, Pandora raised its price to between $10 and $12 a share for a valuation around $1.9 billion, up from its prior range of $7 to $9 a share.

Pandora's revenue climbed from $55.1 million in fiscal 2010 to $137.7 in fiscal 2011, while the company's net loss narrowed dramatically from $16.8 million to $1.8 million over the same period.

IPOBoutique's Sweet estimates that, based on revenue from the first three months of this year, Pandora is at an annualized run rate of $204 million. "They may show their first profitable quarter in the last quarter of fiscal 2011," he added.

Fusion-io, which enjoyed a strong IPO debut this week, posted a net loss of $31.7 million in 2010. And LinkedIn, whose share price saw a triple-digit gain on its first day of trading May 19, said in its S-1 that it plans to lose money in 2011 as it invests heavily in sales and marketing and R&D.

According to a regulatory filing, Pandora had 90 million registered users in April, and has been adding a new registered user every second.

The company, however, did see its net loss spike to $6.8 million during the three months ending April 30, although IPOBoutique's Sweet said that this is not particularly worrying. "I am not concerned," he said. "They are hiring and doing heavy marketing."

--Written by James Rogers in New York.

Readers Also Like:


Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
FIO $0.00 0.00%
LNKD $265.54 -1.44%
AAPL $129.36 0.21%
FB $79.60 -0.19%
GOOG $573.64 0.40%

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs