Seeking Alpha

Pandora slides after releasing July audience metrics

  • Pandora's (P -2.2%) July listener hours totaled 1.28B, +14% Y/Y but only +3% M/M (aided by an extra day) and 5% below May's 1.35B.
  • Active users amounted to 71.2M, +30% Y/Y but barely changed from June's 71.1M.
  • July U.S. radio listening share is pegged at 7.08%, up from 6.13% a year ago and 7.04% in June. It's still below a February peak of 8.48%.
  • Pandora's free mobile listening cap has hurt near-term growth. Is competition from rival free mobile services such as TuneIn and Songza also a factor?
  • Shares still +107% YTD following FQ4 and FQ1 numbers demonstrating improved mobile monetization. FQ2 results arrive later this month.
Comments (1)
  • dgulick
    , contributor
    Comments (1353) | Send Message
    By my model these numbers are indicating that we should see a decent earnings beat when they report in 2 weeks, call is on 8/22. The listening cap is easily seen when you plot these metrics, in particular listener hours. Amazingly, it has had a muted effect on active users, which should be an indication that the cap will have had a smaller impact on sales, in particular mobile ads. This quarter will be the first with the cap fully in place (the cap was implemented half way through last quarter to control royalty costs). I will be interested to see what impact the cap has had on their subscriber adds when they report as well. I suspect this will be a surprise as well.
    8 Aug 2013, 12:24 PM Reply Like
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