Pandora Shares Fall on Weak Guidance
NEW YORK (TheStreet) -- Pandora
The Internet radio giant earned 4 cents a share on record non-GAAP revenue of $162 million in its fiscal second quarter, a 58% year-over-year increase. Analysts polled by Thomson Reuters expected the Internet radio company to earn 2 cents a share on revenue of $156.22 million. Pandora logged 3.88 billion hours of listening, an 18% hike compared to the same period last year. Its share of total U.S. radio listening grew to 7.08% from 6.02% in the prior year's quarter. The mobile business was particularly strong: non-GAAP total mobile revenue grew 92% year-over-year to $116 million.
"Our second fiscal quarter was an important inflection point in Pandora's history," CEO Joe Kennedy said in a statement. "To drive future growth, we are accelerating investment in new technologies, channels and capabilities that maximize the value Pandora delivers."
For the third quarter, Pandora expects revenue between $174 million and $179 million and earnings between 3 and 6 cent a share. Analysts were expecting sales of $170.45 million and earnings of 7 cents a share. The company expects total revenues for this fiscal year between $640 million to $655 million and EPS between breakeven and 5 cents; analysts were looking for 5 cents on $634.08 million.
Shares tumbled 5.57% to $20.50 in after-hours trading.
--Written by Laura Berman in New York