Pandora Media Inc (NYSE:P) released its earnings report for the three months though June this afternoon after Wall Street shut down for the day. The company showed earnings per share of $0.04 for the three months. Revenue in the period came to $162 million. On today’s market stock in Pandora Media Inc (NYSE:P) trended upward, finishing the day at $21.72 per share.
In the run up to the release of these numbers analysts studying the music streaming service were looking for earnings per share of 2 cents. Revenue for the quarter was expected to come in at $156 million by consensus. In the same period of 2012 Pandora Media Inc (NYSE:P) took in revenue of $101 million. The firm broke even in that quarter.
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Mobile monetization at Pandora
The single most important driver of stock in Pandora Media Inc (NYSE:P) so far ion 2013 has been the streaming service’s ability to monetize its mobile users. The company is making strides in increasing its subscriber base, but mobile advertising is what’s really impressing investors.
Shares in the company popped after the company released its last earnings report at the end of June. The catalyst for that rise was the revelation was the company’s increased mobile ad revenue. The firm’s mobile strategy, impressive thus far, will be a key topic during its conference call this afternoon. The company is scheduled to host that call at 5 pm EST.
Competition mounting for Pandora
Pandora Media Inc (NYSE:P) is facing increased competition in the music streaming market as big tech companies like Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) get into the market. Whether or not Pandora can hold out against the massive resources of those companies is a key theme going forward.
The music streaming market is not saturated, but it hasn’t been as easy to open up as the video streaming market. Investors are hopeful that Pandora Media Inc (NYSE:P) can manage to beat out the bigger companies in the market; shares in the company have risen by more than 133% so far in 2013.
Pandora Media Inc (NYSE:P) has real challenges ahead, and its future is not secured by today’s earnings report. Investors, having driven the price of the company’s shares up so much this year, might be quick to desert the company if they detect weakness.