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Mobile Revenue Breakout
Douglas Anmuth – JPMorgan: Just want to ask two things. First can you help us understand more about what’s – how the breakout works in the $59 million of mobile revenue and how much in that is allocated towards subscriptions and how you determine how to allocate the subscription revenue between mobile and web. That’s number one and the second question you’ve talked about local ad campaigns increasing, from having 400 in April to 800 in June and I was curious about what the impact is of the local reseller program, what percentage of your business that is now and what do you think it could be going forward? Thanks.
A Closer Look: Pandora Media Earnings Cheat Sheet>>
Joe Kennedy – President and CEO: This is Joe. We are just looking at the details of the number. I believe of the total $59.2 million of mobile revenue, $53.2 million is ad revenue and the remainder is subscription and the method we use to allocate the subscription is for subscribers based on what percentage of their hours are spent on mobile and other connected devices as opposed to on the desktop. In terms of your second question about the reseller program, we continued to develop a number of different initiatives are particularly focused on local markets that’s one of them that we started earlier this year. I think, we’ll continue to have a number of different experiments in that category. It’s really too early to give any specific kind of results or prognosis for that piece of the puzzle. I think the core revenue generation progress that we’re making, as I said really driven fundamentally by our direct sales efforts both to interactive buyers, moving to multiplatform as well as our direct sales efforts that are attracting radio ad dollars both national and local.
So Young Lee – SunTrust: I was just curious about our COGS, it’s down nicely quarter-over-quarter and year to a low percent of revenue. I was wondering what’s driving that lower costs and is that sustainable COGS for this expenses here today? Also secondly, just curious about your relationship with the ad buying network. I assume, it’s with Media Ocean, I’m wondering what your progress is with others and what road blocks you’ve had to go through to get that deal finished?
Steve Cakebread – CFO: I’ll talk about the cost of revenues, it obviously reflects both our serving costs as well as our trafficking costs for ads through our various ad servers. Those costs, as we continue to grow will decline just based on our volume, so you’ll continue to see and we expect slight improvements there, but nothing dramatic overtime. It will just get better based on volumes.
Joe Kennedy – President and CEO: Yes. I think, you see that generally, across all of the income statement expense line items except for Content acquisition. There is a certain amount of leverage that comes from scale, there are fixed costs, so even though, we are investing heavily, say in particular in the sales line, we’ll continue to invest heavily in the product line. We do get some just sheer revenue base leverage in those lines. In terms of the ad platforms, really a broken record there in terms of the plans that we have outlined at the beginning of the year to make Pandora ad buying as easy as it is to buy your local FM radio station or your Clear Channel national network. Those efforts continue at a good pace and we anticipate the completion by the end of this year which we see really opening up terrific opportunities for us.
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