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Pandora (P) Q1 Results Top Expectations; Listener Metrics Key for 2014 - Cowen

April 25, 2014 8:40 AM EDT
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Price: $8.38 --0%

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    Up: 13 | Down: 10 | New: 10
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Cowen and Company maintains its Outperform rating and $41 target price on Pandora (NYSE: P) following Q1 results.

Analyst John Blackledge noted that Pandora's Q1 revs of $180 million and loss of $.13 per share both topped expectations. The analyst observed, Advertising revenue of $141, up 45% y/y (vs +39.5% y/y growth in 4Q13), 3% above our estimate driven by continued mobile ad growth, as mobile ad revenue of $103MM, increased 59% y/y driven by rising audio ads. Mobile advertising RPM was $29.46, up 44% y/y and slightly ahead of our forecast. PC advertising was $37MM vs. $32MM last year ... In terms of audio ads, P was running about 6 ads/hour (or up to 3 minutes/hour depending on mix of :15/:30 second spots) vs. 4 ads/hour (up to 2 minutes) last year, still well below terrestrial radio average of 12-15 minutes per hour. As in-car listening hours ramp, currently ~5% of total listening hours, P is likely to air more in-car audio ads than on other devices to offset the inability to offer video/display ads.

Overall, Blackledge sees liestening metrics being a key driver for revenue growth through the end of 2014.

For an analyst ratings summary and ratings history on Pandora click here. For more ratings news on Pandora click here.

Shares of Pandora closed at $28.20 yesterday.



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