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Pandora Media Full-Year Guidance Disappoints, Shares Tumble in Afterhours (P)

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Online radio company, Pandora Media Inc. (NYSE: P) said after the market close on Thursday that fiscal second quarter loss widened as expenses increased, offsetting a double digit growth in revenue.

Although adjusted earnings and revenue topped Street’s expectation, shares fell about 5.70% in aftermarket hours on Thursday as earnings outlook for the fiscal third quarter fell short of Wall Street’s expectation. Full-year earnings guidance also missed analysts’ estimation.

For the fiscal third quarter, Pandora Media anticipates non-GAAP earnings to be in the range of 3 cents a share to 6 cents a share. Analysts polled by Thomson Reuters were anticipating 8 cents.

For the full-fiscal year, Pandora expects earnings of breakeven a share to 5 cents a share, down from its earlier guidance of breakeven to 8 cents a share. However, the outlook on full-year adjusted revenue was lifted to $640 million to $655 million from $615 million to $635 million.

For the fiscal second quarter ended July 31, the internet radio company reported a net loss of $7.8 million or 4 cents a share compared to a loss of $5.4 million or 3 cents a share. Stripping out onetime items such as stock based compensation and other expenses, the adjusted earnings stood at 4 cents a share up from a penny a share, in the same quarter of last year.

Revenue climbed 55% to $157.4 million. Adjusted revenue rose 58% to $162 million.

Active users increased 30% from the year-earlier quarter to 71.2 million in the fiscal second quarter.

Earlier in May, the Company projected a adjusted loss of 2 cents a share to a profit of a penny a share on adjusted revenue of $155 million to $160 million.

Revenue from advertising rose 44% to $128.5 million. Revenue from subscription and other sources more than doubled to $28.8 million.

Total costs and expenses soared 55% to $165 million.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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