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Pandora Media (P)

  • Fri, May 15, 11:21 AM
    • Pandora (P -3.1%) has sold off after a New York rate court ruled in favor of music publishing rights group BMI in a dispute over performance royalties. The ruling stands to increase Pandora's royalty payments to BMI to 2.5% of revenue from 1.75%.
    • Of note: Pandora plans to appeal the verdict to a court that recently allowed the company to maintain its current 1.85% royalty rate with publishing rights group ASCAP. Various publishers have sought to withdraw their content from BMI/ASCAP deals in favor directly negotiating with Pandora and other Web streaming services.
    • Altogether, content acquisition costs equaled 54.6% of Pandora's Q1 revenue - recording royalties paid to SoundExchange accounted for a large chunk of the payout. The company was recently cleared by the FCC to buy a Rapid City, SD radio station, a move aimed at lowering Pandora's payments to BMI/ASCAP by allowing it to obtain the rates enjoyed by station-owning rivals.
  • Mon, May 4, 6:42 PM
    • The FCC has ruled to give Pandora Media (P +3.2%) the foreign-ownership waiver it needs to complete a $600K purchase for South Dakota radio station KXMZ-FM -- and thus lower its royalty bills.
    • The waiver means Pandora can exceed the 25% foreign-ownership threshold that would otherwise prevent the sale. The FCC said it would "serve the public interest to permit a widely dispersed group of shareholders to hold aggregate foreign ownership in Pandora Media in excess of the 25 percent benchmark."
    • Performance-right organizations were opposed to the move; Pandora pays ASCAP 1.85% of revenue and BMI 1.75%, which would have meant $33M last year.
    • Previously: Bloomberg: FCC to pave way for Pandora to buy radio station (Apr. 27 2015)
  • Thu, Apr. 23, 4:24 PM
    • Pandora Media (NYSE:P) has slipped 5.1% after hours despite a Q1 earnings beat, as it guides low on EBITDA for the second quarter.
    • Adjusted EBITDA was -$20.9M, up 7% Y/Y and beating an expected -$30.8M.
    • Revenue breakout: Advertising revenue of $178.7M (up 27%); subscription and other revenue, $52M (up 32%). Total mobile revenue came to $181.1M, up 35% on a non-GAAP basis.
    • Listener hours grew to 5.3B, up 11% Y/Y. Active listeners were up to 79.2M from the prior year's 75.3M.
    • The company's updated guidance to suggest Q2 revenue of $280M-$285M (on the high side of expected $280.3M), but EBITDA of $8M-$13M vs. an consensus of $14.6M. For full 2015, the company's expecting revenue of $1.16B-$1.18B (vs. consensus $1.16B) and adjusted EBITDA of $75M-$85M (vs. expected $76.7M).
    • Pandora ended Q1 with $481.3M in cash and equivalents, up from Q4's $458.8M. Cash from operating activities was $27M.
    • Conference call at 5 p.m. ET.
    • Press release
  • Mon, Apr. 13, 9:15 AM
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  • Fri, Apr. 10, 8:06 PM
  • Thu, Apr. 9, 12:03 PM
    • SunTrust analysts say it's "extremely premature" to draw conclusions about headlines that "appear negative" for Pandora Media (P -1.7%), as the Justice Department discusses the details around music performance rights.
    • At issue is music publishers trying to pull works from performance-rights organizations like ASCAP and BMI, in order to get a higher-than-statutory rate directly from Pandora.
    • A pair of judges' rulings have left the issues largely unresolved, Bob Peck and Matthew Thornton write. One factor is whether publishers can license works to some providers at the statutory rate and negotiate a different rate directly.
    • The analysts say further discussion could benefit from more transparency from the PROs and labels over ownership, as well as more notice over withdrawing from PROs.
    • SunTrust rates Pandora stock as a Buy.
  • Wed, Mar. 18, 9:57 AM
    • Pandora Media (NYSE:P) is up 2.9% as CRT Capital upgrades the shares to Buy from Fair Value, on expectations that royalty rate talk would end up favorable for the streaming music firm.
    • Pandora paid a record $439M to rights owners last year. In dealing with the Copyright Royalty Board, the company reports that it pays $10,000 or more a year to 2,000 artists, and $50,000/year or more to more than 800 artists.
    • The analysts raised Pandora's price target to $22, from $16. Shares are currently trading at $16.18.
  • Mon, Mar. 16, 3:18 PM
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  • Fri, Mar. 13, 1:02 PM
    • Pandora Media (NYSE:P) has had a memorable morning (up 8.1% on about double average daily volume) on what has become periodic takeover rumor, but Dougherty analyst Steven Frankel says don't count on music impresario Jay-Z coming in to buy.
    • That rumor "doesn't make any sense to me," Frankel tells Benzinga, noting that Jay-Z invested in subscription streamer Tidal.
    • With key royalty negotiations going on, Frankel doesn't think Pandora will look for a sale.
    • Pandora's at its highest point since tumbling Feb. 5 after earnings.
  • Fri, Mar. 13, 11:15 AM
    • Takeover rumors seem to be driving Pandora Media (NYSE:P), up 8.9% so far on volume that's about to surpass its daily average.
    • Call volume is heavy, and has been.
    • Takeover rumors (unconfirmed to date) have driven stock runs for Pandora going back for a few years.
  • Tue, Feb. 17, 3:36 PM
    • Pandora Media (NYSE:P) made up some ground last week (+4.2%) from a 17% drop following its earnings, but is trading off again today, -2.9%.
    • B. Riley has reiterated its Neutral rating on the stock and set a $12.50 price target.
    • Macquarie today initiated coverage of Pandora with a Neutral rating and a $16 target.
    • Pandora's in the midst of ongoing court battles, including a consumer privacy case in Michigan (where plaintiffs are urging a pro-Pandora decision be overturned) and a licensing-fee dispute in New York with publishing firm BMI.
    • Shares are trading at $15.
    • Previously: Pandora's Q4: Gains in listeners, listener hours, RPMs (Feb. 05 2015)
  • Fri, Feb. 6, 4:47 PM
    • Pandora Media (P -17.2%) followed up last-night's after-hours action in kind during today's session, as the stock fell to a 19-month low, closing at $15.24.
    • Nearly a dozen analysts responded today with downgrades and lower price targets. Stifel Nicolaus' John Egbert noticed that user metrics were promising but the holiday-season revenue miss was "disappointing and clearly ill-timed." He expected better for the next holiday season, after programmatic buying capabilities for mobile platforms come on line in the coming quarter. Stifel lowered its target to $25, from $29.
    • Martin Pyykkonen at Rosenblatt called for more ad inventory: The company "can gradually drive its ad load rate upward to 10% year-over-year growth without disrupting the consumer listening experience." B. Riley, Wells Fargo, Raymond James and Maxim Group downgraded the stock.
    • Wedbush and Albert Fried were (slightly) more positive: Wedbush reiterated its Outperform rating (though at a $27 target, instead of $35), and Albert Fried upgraded to Market Perform from Underweight, though with a $16 target.
    • Previously: Pandora's Q4: Gains in listeners, listener hours, RPMs (Feb. 05 2015)
    • Previously: Pandora plunges 19.9% after Q4 revenue miss (Feb. 05 2015)
  • Fri, Feb. 6, 12:45 PM
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  • Fri, Feb. 6, 9:12 AM
  • Thu, Feb. 5, 5:35 PM
    • Top gainers, as of 5:15 p.m.: PTLA +16.4%. GSB +15.6%. TWTR +11.4%. UBNT +10.8%. YRCW +8.3%.
    • Top losers, as of 5:15 p.m.: P -21.0%. FWM -15.0%. MXWL -14.6%. NTGR -13.5%. CTRL -10.4%.
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  • Thu, Feb. 5, 5:18 PM
    • Pandora's (NYSE:P) Q4 miss featured some promising operating metrics despite a revenue miss and light guidance.
    • Total listener hours at 5.2B (up 15%) for Q4, and 20.03B (up 20%) for the full year.
    • Active listeners at end of Q4: 81.5M, up 7% from prior year.
    • Advertising RPMs (revenue per thousand listener hours) gained: total of $48.19 (up from prior-year $40.95); comprising Computer RPM of $68.83 (up from $61.92) and Mobile/connected devices RPM of $44.37 (up from $36.20).
    • Total RPM: $51.54 (up from prior-year $44.14); comprising computer RPM of $68.06 (up from prior $61.28) and mobile/connected devices RPM of $48.27 (up from prior $39.99).
    • The metric gains aren't entirely unexpected as Q4 is generally a stronger one for Pandora. Shares now down 19.3%.
    • Previously: Pandora plunges 19.9% after Q4 revenue miss (Feb. 05 2015)
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Company Description
Pandora Media Inc provides internet radio services on smartphones, tablets, traditional computers and car audio systems, as well as other internet-connected devices.