Investors Don’t Hear Much Happy News with Pandora's (P) Q3 Results
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Pandora (NYSE: P) today announced financial results for the third quarter of fiscal 2012. Shares of Pandora are being sold off on the news, currently down roughly 3 percent in Tuesday's after-hours session after closing down 5.35 percent.
Revenue rose 99 percent from the same quarter last year to $75.0 million amid a 102 percent increase in advertising sales. Subscriber and other revenue rose 80 percent. Total revenue topped the Street’s consensus of $71.44 million.
Total costs and expenses rose 103 percent year over year to $74.25 million. The largest increase came from Pandora's general and administrative expenses.
Net income attributable to common shareholders was $638,000, much stronger than the $1.77 million loss reported for the same period a year ago. On a GAAP basis, earnings per share were $0.00; non-GAAP earnings were $0.02 per share. The Street was forecasting an earnings loss of $0.01 per share for the quarter.
Pandora ended the quarter with $90.8 million in cash, cash equivalents and short-term investments, down 4.7 percent from the third quarter last year.
Total listener hours rose 104 percent year over year to approximately 2.1 billion.
Looking ahead, management offered fourth-quarter guidance of $80-$84 million in sales and a loss of $0.04 to $0.02 per share.
For fiscal 2012, management raised its revenue guidance range from $270-$270 million to $273-$277 million and its earnings guidance from a range of ($0.07) to ($0.05) to a range of ($0.05) to ($0.02). The Street is currently looking for Pandora to report FY12 sales of $272 million and a loss of $0.06 per share.
"Rapid growth of 104% year-over-year in listener hours and record Internet radio market share growth to 66% illustrates the strong demand for personalized radio," stated Joe Kennedy, Chairman, President & CEO of Pandora. "Our growing scale and powerful, multi-product advertising platform is enabling Pandora to increasingly penetrate areas that were once solely served by terrestrial radio. Our momentum in transforming the radio industry is stronger than ever."
Revenue rose 99 percent from the same quarter last year to $75.0 million amid a 102 percent increase in advertising sales. Subscriber and other revenue rose 80 percent. Total revenue topped the Street’s consensus of $71.44 million.
Total costs and expenses rose 103 percent year over year to $74.25 million. The largest increase came from Pandora's general and administrative expenses.
Net income attributable to common shareholders was $638,000, much stronger than the $1.77 million loss reported for the same period a year ago. On a GAAP basis, earnings per share were $0.00; non-GAAP earnings were $0.02 per share. The Street was forecasting an earnings loss of $0.01 per share for the quarter.
Pandora ended the quarter with $90.8 million in cash, cash equivalents and short-term investments, down 4.7 percent from the third quarter last year.
Total listener hours rose 104 percent year over year to approximately 2.1 billion.
Looking ahead, management offered fourth-quarter guidance of $80-$84 million in sales and a loss of $0.04 to $0.02 per share.
For fiscal 2012, management raised its revenue guidance range from $270-$270 million to $273-$277 million and its earnings guidance from a range of ($0.07) to ($0.05) to a range of ($0.05) to ($0.02). The Street is currently looking for Pandora to report FY12 sales of $272 million and a loss of $0.06 per share.
"Rapid growth of 104% year-over-year in listener hours and record Internet radio market share growth to 66% illustrates the strong demand for personalized radio," stated Joe Kennedy, Chairman, President & CEO of Pandora. "Our growing scale and powerful, multi-product advertising platform is enabling Pandora to increasingly penetrate areas that were once solely served by terrestrial radio. Our momentum in transforming the radio industry is stronger than ever."
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