Pandora Issues Earnings Release – Some Preliminary Thoughts

 

There’s some good news, some not so good news in Pandora’s latest earnings release.

Pandora issues Q3 earnings release.

Pandora has been on a pretty good run since this summer, from hanging out in the teens to hanging out around $30/share.  Good for them.

Pandora issued its earnings release yesterday, showing some positive signs and touting:

  • Pandora closes record revenue quarter, with non-GAAP revenue of $181.6 million, growing 50% year-over-year [Ed Note:  these are quarterly numbers]
  • Mobile advertising revenue exceeds $100 million, growing 58% year-over-year to $104.9 million
  • 3Q14 GAAP total revenue of $180.4 million, growing 50% year-over-year
  • 3Q14 total listener hours of 4.18 billion, growing 17% year-over-year
  • Share of total U.S. radio listening for Pandora in October 2013 was 8.06%, an increase from 6.61% at the same time last year
  • 70.9 million active users , growing 20% year-over-year

So far so good.

On the flip side, net income for the 2012 quarter of $2.1 million turned into a $1.7 million loss, while the nine month number went from a $23.6 million loss to a $38.1 million loss, showing losses increasing by 61.4%.  Losses are increasing faster than revenues, which could be a problem.

Let’s end on a positive note.  Mobile advertising revenue exceeded $100 million during the quarter.  We expect more analysis for our private clients, particularly after Pandora’s Form 10-Q.

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2 Responses to Pandora Issues Earnings Release – Some Preliminary Thoughts

  1. Pandorasucks says:

    This stock is nothing but a big scam, stock went up from 8$ to 31$ in matter of a year with no catalyst. Company growth has stagnated and has been losing money over a decade now.

    What would warrant over 300% increase in stock value other than the irrational thinking of retail investors disillusion by a bull market and supported by analysts who work hand in hand with the underwriters of the secondary offering. Moreover, there has been 111 insider sell executions for this stock in the past 12 months, doesn’t seem like management believes in the company as much as scam Wall St.

  2. db says:

    Pandorasucks, thanks for the comment. We have issues with their business model as well, in addition to our basic preference for Spotify. See http://underdisclosed.com/pandoras-strategy-to-limit-mobile-listeners-works-too-well/. I’m not sure we’d call it a “scam.” What about Pandora do you object to?

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