Pandora Media Inc (P) reports biggest quarterly profit since going public

Posted Feb 5, 2014

Pandora Media Inc (NYSE:P) has reported their Q4 results. The company reported their biggest quarter of profit since going public, which means that their new advertising engine is working well. Pandora’s stock is taking a bit of a beating though. The stock is trading at over 10% less than the closing price in after-hours trading. Pandora’s first-quarter guidance will have a wider loss than expected. Pandora CEO Brian McAndrews said that the company is going to aggressively invest on building a larger audience this year.

This quarter, Pandora transitioned from a fiscal reporting calendar to a typical one. Pandora’s switched to a reporting schedule that starts on the first day of every year. Pandora switched to a reporting schedule that starts on the first day of every year. Pandora reported results for a 3 month period ended December 31st. This sets the pattern for its results going forward and a “stub” period of only 2 months.

Pandora is still the leader based on the number of listeners despite facing competition fro Apple, Google, Spotify, Rdio, and Songza.

Pandora’s revenue increased 52% to $200.4 million compared to analyst expectations of $201.1 million. The guidance for the current quarter was at a loss of 14 to 16 cents a share on revenues of $170 million to $176 million. Analysts expected a loss of 12 cents a share on $171.7 million in revenues.

Pandora’s stock tripled in value in the last year. For the three month period, Pandora posted a profit of $9 million (4 cents a share) compared with $1.6 million ($0.01 a share) a year earlier. When removing unusual items, the per-share profit rose to 11 cents from 5. Analysts expected 7 cents a share.

[Source: CNET]