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Pandora Loss Narrows, But Stock Slips On Weak Q2 Outlook

Internet radio service provider Pandora Media Inc. (P: Quote), Thursday said its loss for the first quarter narrowed from a year ago, driven mainly by a surge in ad revenues. However, shares of the company slipped 5 percent in extended-trade after providing a weak second-quarter outlook.

Oakland, California-based Pandora's first-quarter loss narrowed to $28.9 million or $0.14 per share from $38.7 million or $0.22 per share last year.

Excluding items, adjusted loss for the quarter narrowed to $25.5 million or $0.13 per share from $30.2 million or $0.18 per share in the prior year quarter.

On average, 29 percent analysts polled by Thomson Reuters expected a loss of $0.14 per share for the first quarter. Analysts' estimates typically exclude special items.

Pandora's revenues for the first quarter rose 69 percent to $194.3 million from $115.1 million a year ago. Adjusted revenues increased 54 percent to $180.13 million from $117.04 million last year. Twenty-four analysts, on consensus, expected revenues of $174.96 million for the first quarter.

Advertising revenues, which forms a major part of revenues, soared 45 percent to $140.6 million, while subscription revenues soared 94 percent to $39.5 million.

First-quarter total listener hours rose 12 percent to 4.80 billion, while share of total U.S. radio listening for Pandora in March rose to 9.1 percent from 8.1 percent last year.

Looking forward to the second quarter, the company expects earnings of breakeven per share to $0.03 per share and revenues of $213 million to $218 million. Analysts currently expect earnings $0.05 per share on revenue of $219.33 million for the second quarter.

For the full year 2014, the company now expect adjusted earnings in the range of $0.14 and $0.18 per share and adjusted revenues of $880 million to $900 million. Analysts currently expect earnings of $0.16 per share on revenues of $892.31 million for 2014.

Previously, the company anticipated adjusted earnings of $0.13 to $0.17 per share and adjusted revenue of $870 million to $890 million for the quarter.

P closed Thursday's trading at $28.20, up $0.03 or 0.11%, on the NYSE. The stock, however, dropped $1.50 or 5.32% in after-hours trade.

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by RTT Staff Writer

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