Pandora Media Inc NYSE: P Posts Strong Q1 2017 Results

by Anthony Young | @ | May 11, 2017 9:36 am

Pandora Media Inc NYSE: P posted its Q1 2017 results on Monday after the closing bell. The company’s shares are up 0.87% in pre-market trading on Tuesday, as the company’s subscription numbers increased and monetization via ad-supported offers also increased.

The company’s Pandora Premium service has also attracted a new $150 million investment in the company, which many investors believe will set the company up for a potential sale.

Pandora Media Inc NYSE: P’s revenue grew 6.3% year-over-year, from $297.3 million in Q1 2016 to $316.0 million in Q1 2017. The company’s GAAP net income came in at a loss of $132.3 million, up from a $115.1 million loss a year prior. Pandora Media Inc NYSE: P’s GAAP earnings also came in at a loss of $0.56 per share, up from a loss of $0.51 a share the previous year.

The company’s revenue was above the mid-point guidance of $310 million to $320 million. The company forecasted an adjusted EBITDA of $80 million to $70 million in losses, but posted an EBITDA loss of $71.3 million.

Pandora Media Inc NYSE: P in Subscription Boost

The company’s subscription growth helped boost revenue, with growth hitting 19% and advertising growth up 1% to $223.3 million.

Pandora’s acquisition costs for nearly 80% of the new 1.3 million trials over the past two-month period was almost nonexistent. The company also posted over 500,000 Pandora Premium trials during the same period. The company’s subscription numbers are up to 4.71 million, up 20% year-over-year, but active listeners declined to 76.7 million, down 3.4% on the year.

The company’s ad revenue per 1000 listening hours rose 12% to $50.87. Revenue per paid subscriber also rose to $4.76, while licensing costs per subscriber fell from $3.12 last quarter to $2.96 in the most recent quarter.

The company maintains $203 million in cash and investments as of the end of the quarter, down from $243.3 million in the previous quarter.