Pandora Beats Q2 Estimates, Shares Climb

Shares of

jumped more than 10 percent in after-hours trading after the company reported better-than-expected results for its second quarter. The Oakland, California-based company reported a quarterly loss of $16.1 million, or $0.08 per share, versus a year-ago loss of $11.7 million, or $0.06 per share. Excluding certain items, the company's earnings rose to $0.05 per share from $0.04 per share. Its total revenue climbed 30 percent to $285.6 million. However, analysts were projecting a profit of $0.02 per share on revenue of $283.06 million. The average estimate among 41 Estimize users was for earnings of $0.03 per share and revenue of $282.92 million. Advertising revenue surged 30.2 percent to $230.9 million in the quarter, while subscription and other revenue jumped 31 percent to $54.6 million. Local advertising sales climbed 67 percent to $58.9 million, while mobile revenue gained 37 percent to $229.7 million. Its adjusted EBITDA climbed 29 percent year-over-year to $16.3 million in the quarter. At the end of the quarter, the number of active listeners rose to 79.4 million, compared to 76.4 million, a year earlier. Total listener hours increased to 5.30 billion versus 5.04 billion. Its operating expenses increased to $151.6 million versus $105.2 million. "Our advertising investments, particularly in local, are paying off. This quarter, local ad revenue reached an all-time high, driving record RPMs," stated Brian McAndrews Chairman and CEO of Pandora. "Our monetization success allows us to be an even more effective platform for helping artists grow their careers. In addition to our ability to provide insights to the entire music industry, we fuel promotion that is extremely valuable to music makers." For the current quarter, the company expects revenue of $310 million and $315 million, versus analysts' estimates of $309 million. It now projects FY15 sales of $1.175 billion to $1.185 billion, versus analysts' expectations of $1.17 billion. Pandora shares surged 10.16 percent to $15.29 in the after-hours trading session.