Pandora Beats The Street, But Sees Dip In Listener Hours

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Updated at 7pm Eastern


Here’s the good news for beleaguered Pandora Media shareholders: The company’s total consolidated revenue in Q2 was $376.8 million, a 10% year-over-year increase.

Additionally, its gross profit increased to $133 million, from $126 million, in Q2, as its all-important advertising revenue improved to $278.2 million, from $265.1 million.

That may not matter to shareholders come Tuesday’s Opening Bell on Wall Street: Pandora saw a net loss available to common shareholders of $289.6 million ($1.20) in Q2, compared to $76.3 million (33 cents per share) in Q2 2016.

This includes a goodwill impairment charge to reflect a one-time write down related to the net assets of Ticketfly and other one-time expenses related to the financing transaction. Even so, Pandora’s non-GAAP net loss was $50.1 million (21 cents per share), widening from $26.8 million (12 cents).

Adjusted EBITDA was a loss of $54.3 million, compared to a loss of $25.1 million in the same quarter last year.

Overcoming the huge net loss could already be in the works, given the recent exit of founder and former CEO Tim Westergren.

And, in another positive sign that Pandora is on a road to recovery, total paid subscribers increased to 4.86 million in Q2 2017, from 3.93 million — a 24% year-over-year jump.

Additionally, subscription and other revenue was $68.9 million, reflecting a 25% year-over-year increase.

Plus, the company ended Q2 with $227.6 million in cash and investments, compared to $203.0 million at the end of Q1.

Commenting on the first quarterly results released as interim CEO, Pandora CFO Naveen Chopra said, “We have taken a number of steps to hone the company’s strategy and position Pandora to continue to build audience and extend monetization through a combination of advertising and subscription revenue streams. In addition to exceeding our revenue expectations this quarter, we also announced several important strategic moves, including a $480 million investment from Sirius XM, the sale of Ticketfly, and changes to our board and management team.”

Chopra added that Pandora remains “laser-focused on execution that attracts listeners and investments that drive the growth and monetization of our audience.”

That “laser focus” will need to be refined: Pandora reports that total listener hours in Q1 were 5.22 billion.

That’s down from 5.66 billion in Q2 2016.

The revenue of $376.8 million beat the consensus estimate of $368.2 million of analysts polled by Thomson Reuters.

Additionally, the 21 cent net loss beat the consensus estimate of analysts polled by Thomson Reuters, of 24 cents.

At 7pm Eastern, after-hours trading shows Pandora shares at $8.95.


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