Pandora Media Inc (NYSE:P) pans mobile platform successfully
Pandora Media Inc (NYSE:P)’s Q2 results topped analysts’ revenue and profit estimates. These got a major boost by increased revenue of the streaming-music service. The company’s shares rose by 1.02% and closed at $21.71 in Wednesday’s trading. Pandora’s net income for the quarter was $7.5M on $162M in revenue. With the exclusion of one-time items, the company posted earnings per share of 4 cents.
Contrastingly, analysts had estimated the net income to come in at 2 cents/share and the net income to be $3.46M on revenue of $156.22M, for the quarter. Pandora’s chief executive officer said that the company has gained a lot of momentum in its mobile business and that non-GAAP revenue has increased y-o-y by 92%. This is a clear indication that the Pandora business model is working.
The key growth factor
So far in 2013, the one outstanding factor that the company has banked on its ability to monetize mobile users of its service. Its subscriber-base is swelling but it is mobile advertising that impresses all its investors. The online music streaming market is not really saturated at the moment but competition is definitely heating up with giants like Google and Apple making their foray into this space. Going forward the one thing that will have to be seen is how the company holds up against its competitors.
A good quarterly earnings report is by no means a guarantee that the company will not face any pitfalls in the future. Pandora will have to be on its toes and play to the investor gallery, lest they desert it at the slightest sign of weakness.
In Thursday’s trading session, Pandora stock gained 1.02%. The opening price of the shares was $21.71 which touched an intraday high of $21.80 and closed at $21.71. More than 15.66M shares were traded in Thursday’s trading while the average volume of shares traded over 30 days was 7.22M. The company has a market cap of $ 3.79 billion.