Online radio service Pandora Media has reported results that beat expectations on strong advertising sales in its fiscal second quarter. Pandora shares rose 5.9 per cent to $13.20 in after-hours trading following the earnings report.“We have great respect and appreciation for profitability but at this early stage in the game we think the key is growth,” Pandora Chief Executive Joseph Kennedy said in an interview with Reuters.
Pandora reported quarterly revenue jumped 117 per cent to $67 million, beating the average analyst estimate of $61.1 million. Advertising revenue rose 118 per cent to $58.3 million.
The Internet company had a closely watched IPO in June that surged out of the gate in its early debut only to reverse course as doubts increased about whether it would ever turn a profit.The company posted a net loss of 4 cents per share. Adjusted for stock-based compensation, Pandora reported a profit of 2 cents per share, blowing past analysts’ average forecast of a loss of 3 cents, according to Thomson Reuters.
“You still have the concerns but when you’re posting 100 per cent revenue growth and you can continue that over a while, that helps,” said Albert Fried & Co analyst Rich Tullo.
Pandora is up against traditional radio companies, satellite radio provider Sirius XM Radio, music services such as Rhapsody and Spotify, and offerings from Apple, Google and Amazon.com Inc. Pandora said its estimated share of total US radio listening was 3.6 per cent at the end of the second quarter, up from 1.8 per cent a year ago. “We see a tremendous opportunity ahead and we are investing heavily,” Kennedy said.
From / Gulf Today