Pandora’s Q2 2013: $101.3M In Revenue, 54.9M Active Users, And A Net Loss Of $5.4M
Internet music service Pandora just announced its financial results for the second quarter of its fiscal 2013. The company posted total revenue of $101.3 million, which was up 51 percent year-over-year. Yet, Pandora still reported a net loss per share of $0.03. As always, the most important expense for Pandora is content acquisition — in other words, music royalties. Non-GAAP earnings per share were breakeven excluding approximately $6 million in stock-based compensation.
Pandora Radio

Internet music service Pandora just announced its financial results for the second quarter of its fiscal 2013. The company posted total revenue of $101.3 million, which was up 51 percent year-over-year. Yet, Pandora still reported a net loss per share of $0.03. In total, it represents a net loss of $5.4 million. As always, the most important expense for Pandora is content acquisition — in other words, music royalties. Non-GAAP earnings per share were breakeven excluding approximately $6 million in stock-based compensation.

Advertising revenue was $89.4 million, a 53 percent year-over-year increase. Subscription and other revenue was $11.9 million, a 36 percent year-over-year increase.

Pandora currently has $82.3 million in cash, cash equivalents and short-term investments. That’s up $1.7 million from the last quarter. Pandora expects similar performance next quarter by breaking even (or very slightly raising) on non-GAAP earnings per share.

It had 54.9 million active users this quarter, up 48 percent year-over-year and a 2.9 million increase from last quarter. An important metric is the total number of listener hours. It grew 80 percent year-over-year to 3.3 billion hours for this quarter.

Even though unlimited music streaming service Spotify introduced a free radio service on iOS and then on Android, Pandora usage numbers are still growing. Pandora is competing on a larger scale with traditional radios and there is still room for growth.

On August 13, Morgan Stanley cut Pandora’s rating. It resulted in shares falling under $10. Analyst Scott Dewitt expected that going after the local radio ad dollars and building a sales team for that endeavor would hurt the company’s earnings. The company managed to compensate that with a $20.5 million increase in revenue compared to previous quarter.

Looking ahead, Pandora is once again raising its expectations for the full fiscal year. The company now expects to make between $425 and $432 million in revenue for its fiscal 2013, resulting in a net loss per-share of between $0.04 and $0.08.



Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here