Pandora Earnings Surprise, Yet Company Loses Money In Q2
August 26, 2011 at 3:56 AM (PT)
PANDORA MEDIA has reported second-quarter earnings ahead of WALL STREET's relatively low expectations and drove its shares up 3%. The internet radio company reported a 117% increase in revenue from a year earlier to $67 million as advertising and subscription sales grew.
PANDORA continued to lose money, reporting a $1.8-million loss, (4 cents a share), for the quarter that ended JULY 31st. A year ago, the company posted a $1.6-million profit (4 cents a share).
THE LOS ANGELES TIMES reports, "Adjusting for stock compensation costs for its executives and other special expenses, PANDORA posted $3.3 million in net income, compared with $2.6 million a year earlier. Analysts had expected PANDORA to break even for the quarter on $61 million in revenue. Its shares, which rose 40 cents to $12.47, jumped an additional 33 cents in after-hours trading following the earnings release."
PANDORA also reported 37 million active users, listening for a total of 1.8 billion hours in its second quarter listening to the free service, claiming 3.6% of all U.S. radio listening.
"PANDORA is personalizing radio -- and consumers are enthusiastically embracing the dramatically better experience," said Pres./CEO JOE KENNEDY. "At the same time, advertisers continue their adoption of PANDORA's multi-platform ad solutions, resulting in our 6th consecutive quarter of year-over-year triple digit revenue growth. In addition to continued high growth in web revenue, PANDORA's mobile advertising revenue for the first time comprised approximately half of total advertising revenue as we lead the way in the nascent but fast growing mobile advertising market. PANDORA continues to grow our market share of U.S. radio as we fundamentally transform one of the last forms of traditional media."