Pandora Media Inc (P) Beats EPS Estimates, Misses Guidance

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Pandora Media Inc (NYSE:P) released the results from its most recently completed quarter tonight, posting earnings of 4 cents per share, excluding items, on $219 million in revenue. Analysts had been expecting earnings of 3 cents per share on $219 million in revenue.

The company posted GAAP losses of 6 cents per share and provided guidance that was lower than expected.

Breaking down Pandora Media’s earnings

For the second quarter, Pandora saw a year over year growth of 43% on a GAAP basis and 38% on a non-GAAP basis. The streaming radio provider reported $167.5 million in total mobile revenue, an increase of 59% on a GAAP basis and 51% on a non-GAAP basis. Local ad revenue was $35.3 million, representing a year over year growth rate of 144%. Mobile advertising hit a new record of 76% of Pandora’s total ad revenue.

Pandora Media said its share of total U.S. radio listening was 8.9% in June, up from 7.04% in the same month last year. The company reported a 29% growth rate in total listener hours, which rose to $5.04 billion, compared to 3.91 billion in the same quarter a year ago. The number of active listeners grew 7.5% to 76.4 million as of the end of the second quarter.

Pandora guides for third quarter, full year

For the third quarter, Pandora said it expects revenue to be between $235 million and $240 million, compared to the consensus estimate of $234.6 million. It projects non-GAAP earnings of between 5 cents and 8 cents per share. This is undoubtedly where the company got in trouble with investors, as analysts are projecting earnings per share of 8 cents for the third quarter. Non-GAAP earnings exclude stock-based compensation and amortization.

For the full year, the company projects non-GAAP revenue of between $895 million and $915 million. That’s an increase from Pandora’s previous guidance of between $880 million and $900 million. Pandora Media projects non-GAAP earnings of between 16 cents and 19 cents, an increase from their previous guidance range of between 14 cents and 18 cents. Analysts are projecting earnings of 17 cents per share and revenue of $900.8 million for the full year.

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