Quarterly report pursuant to Section 13 or 15(d)

Segment Data and Revenue by Geographic Area

v3.7.0.1
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.