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Pandora (P) Beats Q2 Earnings Estimates, Shares Rise

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Pandora (P - Free Report) just released its second quarter fiscal 2017 earnings results, posting earnings of a loss of $0.31 per share and revenue of $376.8 million. Currently, Pandora has a Zacks Rank #3 (Hold), and it is up 3.58% to $9.27 in after-hours trading shortly after its earnings report was released.


Beat earnings estimates.The company posted adjusted earnings of -$0.31 cents per share, after excluding $0.89 for non-recurring items, beating our Zacks Consensus Estimate of -$0.39.

Beat revenue estimates.The company saw revenue figures of $376.8 million, beating our estimate of $364.70 million. Total revenue increased 10% year-over-year. Ad revenue was $278.2 million, growing 5% year-over-year. Subscription revenue was $68.9 million, growing 25% year-over-year.

Total paid subscribers increased from 3.93 million to 4.86 million, growing approximately 24% year-over-year.

Ad revenue per thousand impressions (RPM) grew to $66.15 from $53.34, growing 24% year-over-year.

Pandora showed strong audience engagement, with listeners tuning in an average of 26 days per quarter and listening to about 23 hours of music per month. Active listeners were 76 million.

Pandora will discuss its guidance during its Q2 conference call later today.

“We have taken a number of steps to hone the company’s strategy and position Pandora to continue to build audience and extend monetization through a combination of advertising and subscription revenue streams,” said Naveen Chopra, CFO and interim CEO of Pandora.

“In addition to exceeding our revenue expectations this quarter, we also announced several important strategic moves including a $480 million investment from Sirius XM, the sale of Ticketfly, and the changes to our board and management team. We remain laser-focused on execution that attracts listeners and investments that drive the growth and monetization of our audience.”

Here’s a graph that looks at Pandora’s price, consensus, and EPS surprise:

Pandora Media, Inc. Price, Consensus and EPS Surprise

Pandora Media, Inc. Price, Consensus and EPS Surprise | Pandora Media, Inc. Quote

Pandora Media, Inc. operates as a provider of Internet radio in the United States. It provides services to traditional computers, smartphones, such as Android phones, Blackberry phones and the iPhone. When a listener enters a single song, artist, composer or genre to start a station, its mathematical algorithms combine the genes cataloged with individual and collective feedback to suggest songs and build personalized playlists. The company also offers advertising solutions addressing advertising markets: online display, rich media and video, mobile and broadcast radio. Pandora Media, Inc., formerly known as Savage Beast Technologies Incorporated, is based in Oakland, California.

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