Investment website Seeking Alpha is very good as a source of transcripts for company earning calls, but more hit-and-miss when it comes to editorial content – written as it is by actual investors, who tend to have strong views for or against the companies they’re backing or slamming. A piece by Andrei Volgin about Pandora – a company he admits to being “short” on – raises some interesting questions about its growth though. He takes the recent announcement that Pandora has 250m registered users as a worrying sign of high churn among its users. His workings: Pandora had 175m registered accounts and 65.6m active users in January 2013, and 250m and 75.3m respectively now. “A very simple calculation reveals that 75 million new accounts translated into an increase of less than 10 million in active accounts,” writes Volgin. “In other words, almost as many accounts (65 million, or 87%) became inactive as the number of new accounts opened during this period. This gives us an annual churn rate of approximately 34.3%, which means that Pandora loses a third of its customers each year.”

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