Pandora Stock Closed Last Week Down 24% After Weak Earnings Report, Listener Dip

Pandora-new-logo-image-001[UPDATED] Pandora stock lost a quarter of its value last Friday, closing the week down 24.46%, after its new CEO reported weaker than expected earnings growth alongside a 7% decline in total listeners hours in the same period last year as well as a somewhat smaller $5.3 million third quarter loss. Pre-market trading on Monday showed the stock recovering by just 1.43% to $5.59.

Paid subscriptions did grow 29% year-over-year to 5.19 million, including 1 million subscribers to Pandora’s Premium on-demand streaming service, which launched in May of this year. 

Some highlights from yesterday earning call:

Key User Base Metrics: 
  • Total monthly active users = 73.7M 
  • Pandora Premium paid subscribers cross the 1 million milestone in October 2017
  • Total paid subscribers (across Pandora Plus & Premium) = 5.19 million / 29% YoY increase 
  • Listeners tuning in an average of 23 hours per month
  • Daily active users on Consumer Electronic (CE) and Automotive Platforms were up 36% year-over-year
Key Financial Metrics:
  • Revenue excluding ticketing was $360.2 million, growing 9% year-over-year
  • Adjusted EBITDA loss was $5.3 million – compared to a loss of $6.6 million in the same quarter last year
  • Q2 subscription revenue was $84.4 million / 50% YoY increase

Read the full report here.

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