Pandora Widens 2Q Loss But Beats Expectations

Pandora (NYSE:P) widened its second-quarter loss on Thursday but revenue jumped 58% year-over-year and both the top- and bottom-lines surpassed Wall Street expectations.

The Oakland, Calif.-based digital radio provider reported a loss of $7.8 million, or 4 cents a share, compared with a year-earlier profit of $5.4 million, or three cents.

Excluding one-time items, Pandora said it earned 4 cents a share, topping average analyst estimates in a Thomson Reuters poll by two pennies.

Revenue for the three months ended July 31 grew 58% to $162 million, beating the Street’s view of $156 million. Pandora’s active users grew 30% year-over-year to 71.2 million, while listening hours increased 18% to 3.88 billion.

"Our second fiscal quarter was an important inflection point in Pandora's history,” Pandora CEO Joe Kennedy said in a statement. “Strong momentum in our mobile business, with non-GAAP total mobile revenue growing 92% year-over-year to $116 million, clearly demonstrates the leverage in Pandora's business model.”

However, Pandora's outlook was mixed, partially leading to a sell-off in after-hours trade that sent the radio giant's shares down 4% to $20.80.

For the third quarter, Pandora sees adjusted earnings per share between three cents and six cents a share, below the eight cents forecasted on average by analysts.

It also narrowed its earnings outlook for the full year to either break even or five cents a share, which is mostly below the Street’s view of five cents, though Pandora raised its adjusted revenue target to between $640 million and $655 million, above the consensus view of $634 million.