The Pandora Media Inc (NYSE:P) Q3 2017 earnings results were released after closing bell, and the company posted net losses of 27 cents per share on $378.6 million in revenue, an 8% increase above last year’s third-quarter result. Analysts had been looking for $380.76 million in revenue. In the year-ago quarter, Pandora reported $351.9 million in revenue.
Pandora Media Q3 2017 earnings
Ad revenue grew 1% year over year, including a higher average price per ad, although Pandora sold fewer ads, offsetting that gain. Subscriptions revenue grew 50% year over year to $84.4 million, while ticketing service revenue fell 16% to $18.5 million. The GAAP net loss was $66.2 million compared to $61.5 million in net losses last year. Adjusted EBITDA was -$5.3 million, compared to -$6.6 million in the same quarter a year ago.
“After just a short time here at Pandora, it’s clear to me we have a tremendous opportunity to meet the full spectrum of our listeners’ and advertisers’ needs,” President and Chief Executive Roger Lynch said in a statement with the Pandora Media Q3 2017 earnings release. “We have significant scale, distribution and products that deliver a superior listening experience. We will leverage these strengths to become a more integral part of our listeners’ lives and reinforce our position as the definitive source for audio advertising.”
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Pandora’s RPM surges
Pandora’s ad RPM reached a record high of $70.27, compared to the $58.10 notched in last year’s third quarter. The company had 1 million Pandora Premium paid subscribers as of October, a major milestone. Pandora had 5.19 million total paid subscribers. The number of total subscribers grew 29% year over year to 5.19 million, while the number of daily active users on Consumer Electronic and Automotive Platforms grew 36%.
Listener hours fell to 5.15 billion from 5.4 billion in last year’s third quarter. The number of active listeners totaled 73.7 million, excluding 1.1 million listeners in Australia and New Zealand as Pandora Media announced plans to exit its business in those areas.
Following the release of the Pandora Media Q3 2017 earnings results, the company’s stock tumbled in after-hours trades, falling by as much as 5.53% to $7 per share.