Internet radio company Pandora Media Inc. (P), Thursday reported a first-quarter loss that widened from a year ago, due mainly to increased content acquisition costs and marketing expenses. Revenues surged from a year ago, on growth in mobile advertising revenues and as subscriptions gained momentum. Loss per share was in line with Wall Street estimates, while revenues exceeded expectations.
Looking ahead, Pandora lifted its revenue guidance for the full year 2014. Following the announcement of results, the company's stock jumped nine percent in after-hours trade on the New York Stock Exchange.
"Mobile listening hours and mobile ad revenue reached record highs, with growth in mobile ad revenue exceeding growth in mobile listening hours...," said CEO Joe Kennedy.
Pandora's results comes amid increasing popularity for its services, even as it faces elevated competition from Spotify, as well as Google Inc.'s (GOOG) 'Google Play Music All Access' service that was announced earlier this month.
Oakland, California-based Pandora posted a quarterly net loss of $28.6 million or $0.16 per share, compared with a net loss of $20 million or $0.12 per share last year.
Excluding items, adjusted loss for the quarter was $18 million or $0.10 per share, compared with an adjusted loss of $14 million or $0.08 per share last year.
On average, 23 analysts polled by Thomson Reuters expected a loss of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the first quarter surged 55 percent to $125.5 million from $80.8 million a year ago. Adjusted revenues were up 58 percent at $128.5 million for the quarter. Analysts had consensus revenue estimate of $123.83 million for the quarter.
Advertising revenues, which forms a major part of revenues, rose 49 percent, while subscription revenues more than doubled.
Pandora One subscribers surpassed the 2.5 million-mark, adding over 700 thousand net new subscribers in the quarter.
Active users reached 70.1 million, growing 35 percent year-over-year, and total listener hours grew 35 percent to 4.18 billion.
Results were impacted by expenses that escalated to $154 million from $101 million a year ago.
For the second quarter, Pandora expects non-GAAP results to range between a loss of $0.02 per share and a profit of $0.01 per share, and revenues in the range of $155 million to $160 million.
Analysts currently expect earnings of $0.01 per share on revenues of $149.70 million for the second quarter.
For fiscal year 2014, the company now expects non-GAAP results to range between a loss of $0.02 per share and a profit of $0.08 per share, and revenues of $615 million to $635 million.
Earlier Pandora had estimated adjusted earnings to range between a loss of $0.05 per share and a profit of $0.05 per share, and revenues of $600 million to $620 million.
Analysts currently expect earnings of $0.01 per share on revenues of $616.73 million for 2014.
Pandora's stock closed Thursday at $17.16, up $0.68 or 4.13%, on a volume of 14.6 million shares. In after hours, the stock gained $1.57 or 9.15%, to trade at $18.73. In the past year, the stock has trended in a range of $7.08 - $17.65.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.