NVIDIA Corp, Pandora Media Inc Shares Fall After Earnings

NVIDIA and Pandora Media released their latest earnings reports after closing bell tonight. NVIDIA posted non-GAAP earnings of $1.13 per share and GAAP earnings of 99 cents per share or $655 million on $2.2 billion in revenues, while analysts were expecting 83 cents per share and $2.1 billion in revenue. The chip maker had guided for $1.9 billion, plus or minus 2 percentage points, in revenue for the quarter. In the year-ago quarter, it reported $2 billion in revenue, 52 cents per share in non-GAAP earnings, and 35 cents per share in GAAP earnings.

Pandora Media reported $392.6 million in revenue and adjusted losses of 13 cents per share, while Wall Street was expecting losses of 21 cents per share on $374.2 million in revenue. In the same quarter a year ago, the streaming music service provider reported adjusted earnings of 4 cents per share.

NVIDIA posts record quarter

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NVIDIA’s GAAP gross margin was 60%, while its non-GAAP gross margin was 60.2%.

“We had a great finish to a record year, with continued strong growth across all our businesses,” NVIDIA Founder and CEO Jen-Hsun Huang said in a statement. “Our GPU computing platform is enjoying rapid adoption in artificial intelligence, cloud computing, gaming, and autonomous vehicles.?”

For the first quarter, NVIDIA expects $1.9 billion in revenue, plus or minus 2 percent. It expects its GAAP margin to be about 59.5% and the non-GAAP margin to be 59.7%, plus or minus 50 basis points. The Street expects NVIDIA to report 64 cents per share in earnings and $1.88 billion in revenue.

Shares of NVIDIA declined by as much as 2.59% to $113.36 in after-hours trades.

Pandora Media shares slump on disappointing outlook

Pandora

Pandora Media said net losses amounted to 38 cents per share. Ad RPMs in the fourth quarter grew 18% to $67.43, while ad revenue rose 16% to $313.3 million. Ticketing service revenue grew 20% to $19.4 million in the fourth quarter. Adjusted EBITDA flipped to a loss of $30.4 million from a profit of $24.8 million in the year-ago quarter. Average revenue per paid subscriber amounted to $4.73 in the fourth quarter, while subscription licensing cost per user was $3.12.

Total listener hours ticked upward 0.4% to 5.38 billion in the fourth quarter, while active listeners shrunk to 81 million from 81.1 million in the year-ago quarter. Subscribers rose 12% to 4.39 million.

For the first quarter, Pandora Media expects $310 million to $320 million in revenue and an adjusted EBITDA loss of $80 million to $70 million. The Street expects Pandora’s revenue to rise to $341.7 million for the current quarter. Consensus for earnings currently stands at an adjusted loss of 27 cents per share, compared to the year-ago profit of 2 cents per share.

Shares of Pandora Media fell by as much as 2.77% to $12.27 in after-hours trades.