Pandora Media Earnings: Tops Estimates, Shares Rock Higher

Hampered by higher costs, Pandora Media Inc. (NYSE:P) booked a net loss in the most recent quarter. Pandora Media operates as an Internet radio company in the United States. It provides its radio service to traditional computers, Android phones, Blackberry phones, and the iPhone.

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Pandora Media Earnings Cheat Sheet for the First Quarter

Results: Loss widened to $20.2 million (12 cents per diluted share) from $6.8 million (loss of 61 cents per share) in the same quarter a year earlier.

Revenue: Rose 58.3% to $80.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pandora Media Inc. reported an adjusted net loss of 9 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 18 cents per share. It beat the average revenue estimate of $74.3 million.

Quoting Management: “Pandora is off to an excellent start, exceeding our first quarter outlook and raising our expectations for the full fiscal year,” stated Joe Kennedy, Chairman & CEO of Pandora. “This quarter Pandora averaged more than 50 million active users a month who generated more than 3.09 billion listening hours across Pandora’s multiple platforms – desktop, auto, consumer electronics, and mobile devices. Consumers continue to embrace Pandora’s unparalleled personalized radio experience at an extraordinary rate, propelling Pandora’s market leadership to an all-time record share of 5.95% of total U.S. radio listening. Advertisers want to be everywhere their consumers are. They are moving quickly to speak with their target customers across the Pandora platform, with the majority of the top 50 digital advertisers in the U.S. already having bought multiplatform advertising on Pandora. Pandora is the future of radio.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with a loss of 5 cents versus a mean estimate of a loss of 2 cents per share.

Looking Forward: Expectations for the company’s performance in the upcoming quarter are lower than they were ninety days ago. Over the past three months, the average estimate for the second quarter has fallen from a profit of 2 cents per share to a loss of 2 cents. For the fiscal year, the average estimate has moved down from a profit of one cent a share to a loss of 16 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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