Pandora's Mobile Ad Revs Up 92% In Q2
Revenue at online radio service Pandora increased 55% to $157.4 million in the second quarter as mobile ad sales nearly doubled from a year ago. It reported adjusted earnings of 4 cents per share.
Analysts were expecting Pandora to earn 2 cents a share on revenue of $155.7 million.
Pandora said mobile advertising in the quarter increased 92% to $116 million, while overall advertising rose 44% to $128.5 million. Subscription revenue was up 153% to $33.5 million.
Total listener hours grew 18% to 3.88 billion from 3.3 billion a year ago.
During the company's earnings conference call, Pandora said it would lift the 40-hour monthly limit on mobile listening on Sept. 1, despite savings gained in content costs. CFO Mike Herring said the company's growing ad revenue would cover increased royalty costs from lifting the cap, and still leave money to invest back in the business.
For the third quarter, Pandora forecast earnings between 3 cents and 6 cents a share on revenue of $174 million to $179 million. That compares to analysts projects of earnings per share of 8 cents on revenue of $170.7 million.
For the full year, the company said it could breakeven or earn 5 cents per share. It previously projected losing 2 cents or earnings 8 cents. Wall Street projected 5 cents in earnings.
Pandora raised its revenue outlook to a range of $640 million to $655 million. Analysts were looking for $632.9 million.
The company’s shares, which closed Thursday at $21.71, were down about 2% in after-hours trading following its earnings announcement.