Pandora Q3 Financials Show Total Revenue, Advertising Up More Than 40%, Though Stock Drops In After-Hours Trading
October 23, 2014 at 1:50 PM (PT)
Internet radio service PANDORA announced financial results for the third quarter ended SEPTEMBER 30th today, with total revenue at $239.6 million, a 40% year-over-year increase and dvertising revenue at $194.3 million, a 44% year-over-year increase. Subscription and other revenue was $45.3 million, a 25% year-over-year increase, all on a non-GAAP basis.
And, though those totals beat analyst estimates, the stock still fell 4.41% in after-hours trading to $22.10.
“Our business is on-track and operating as planned, with accelerating advertising revenue growth and record RPMs, the result of increased mobile monetization and scale,” stated PANDORA Chairman/President and CEO BRIAN McANDREWS. “At the same time we’re excited to have established PANDORA AMP, the ARTIST MARKETING PLATFORM, generated from tens of billions of hours of personalized listening. PANDORA AMP offers meaningful data and insights to all 125,000-plus artists played on the service, and will help artists with critical decisions such as tour routing, set lists and title tracks."
The company ended 3Q with $437.3 million in cash and investments compared to $437.9 million at the end of the prior quarter. Cash provided by operating activities was $5.1 million for the third quarter of 2014 compared to $5.8 million in the year-ago quarter.
Total listener hours grew 25% to 4.99 billion for the third quarter of 2014, compared to 3.99 billion for the same period last year. Active listeners grew 5.2% to 76.5 million at the end of the third quarter of 2014, compared to 72.7 million from the same period last year.
Q4 revenue is expected to be in the approximate range of $273 million to $278 million.