Fri, Jul. 24, 12:45 PM
Fri, Jul. 24, 9:17 AM
Thu, Jul. 23, 5:43 PM
Thu, Jul. 23, 4:22 PM
- Pandora (NYSE:P) expects Q3 revenue of $310M-$315M (above a $309.2M consensus) and 2015 revenue of $1.175B-$1.185B (above a $1.17B consensus). Adjusted EBITDA guidance is respectively at $25M-$30M and $75M-$85M.
- Top-line performance: Q2 ad revenue +30% Y/Y to $230.9M. Subscription/other revenue +31% to $54.6M. Mobile revenue +37% to $229.7M (80% of total revenue). Local ad revenue +67% to $58.9M (21% of total).
- Metrics: Listener hours +5% Y/Y to 5.3B. Active listeners +4% to 79.4M. Ad RPMs rose to $49.94 from $40.11 a year ago - $74.35 for PCs, $46.15 for mobile/other devices.
- Financials: Content acquisition costs (royalties) rose 17% Y/Y to $130.1M (46% of revenue), but grew slower than revenue (30%). On the other hand, GAAP operating expenses rose 44% to $151.6M - sales/marketing spend totaled $94M, R&D $18.7M, and G&A $38.8M. Pandora ended Q2 with $461.5M in cash/investments, and no debt.
- Shares have risen to $14.41 AH.
- Q2 results, PR
- Update (7:40PM ET): Pandora is now up 10.2% AH.
Thu, Jul. 23, 4:04 PM
Wed, Jul. 15, 1:55 PM
- OTR Global's Michael Foster reports the launch of Pandora's (NYSE:P) programmatic (automated) ad-buying platform has yielded "tepid buyer enthusiasm," and (according to checks) Pandora ad spend rose 21% Y/Y in Q2. Consensus is for 29% total revenue growth.
- One of Foster's sources: "We were approached earlier this year to test out Pandora's private [programmatic] exchange. It has boosted both [click-through rates] and conversion rates. However, what we can do with it is fairly limited, and total volume is still miniscule compared to Facebook or Google, so that has limited our spend on it."
- Foster states sources are disappointed Pandora's exchange doesn't yet support audio ads. He adds marketers are increasingly including audio ads within their digital campaigns, as improved targeting and delivery verification yield better performance.
- Pandora has fallen to new 52-week lows. Q2 results arrive on July 23.
Thu, Jul. 9, 10:23 AM
- Pandora (P +4.7%), GSV Capital (GSVC +3.1%), Tangoe (TNGO +3.4%), and Envestnet (ENV +4.9%) are outperforming after receiving Outperform ratings from Northland Securities. Price targets are respectively at $20, $13, $18, and $50.
- Northland's Jeff Houston (formerly with Barrington Research) on GSV: "GSV provides investors with access to disruptive, emerging-growth (100% growth on average), privately-held, pre-IPO companies at discounts. The fund typically invests alongside venture capitalists with the best track records, such as Kleiner Perkins, IVP, and Benchmark. At the end of 1Q15, it had positions in 46 private and four public companies and the theme mix was education tech 35%, cloud 29%, social/mobile 22%, marketplaces 9%, and sustainability 6%."
- Houston on Tangoe: ""Tangoe's SaaS and technology-enabled services optimize $29.9 billion of IT spend for more than 1,000 large and midsize organizations. Its flagship offerings address mobile and fixed communications spend and newer products address Cloud (SaaS and infrastructure), IT, and machine-to-machine (M2M) spend ... Clients typically enjoy a 3-10x annual ROI through savings and enhanced productivity." He also provided bullish commentary on the company while at Barrington.
- Pandora's Q2 report arrives on July 23. Shares -14% YTD.
Tue, Jun. 9, 1:21 PM
- Pandora (NYSE:P) is down 7% over the last two days as Apple's (expected) launch of a subscription streaming service is digested.
- The service's iTunes/iOS Music app integration, Android support (due in the fall), 3-month free trial, and aggressive family plan pricing (up to 6 members for $14.99/month) have stoked fears Pandora will lose streaming share.
- At the same time, Apple Music's core streaming/offline download catalog and features are similar to those offered by Spotify and other existing Pandora rivals, as is its individual plan pricing ($9.99/month). And unlike Spotify, Apple isn't providing a free/ad-supported on-demand streaming service.
- Pandora CFO Mike Herring is downplaying the threat. "The bigger opportunity, at least in America, at least through our research, is the ad-supported ... [Pandora's product] has a lot of loyalty and has really been very successful with a lot of competition. We don’t expect that to change.”
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
Fri, Apr. 10, 8:06 PM
- With news that Spotify is close to a new funding round of $400M, Pandora Media (NYSE:P) rose 5.3% after hours on what investors are taking as positive valuation news.
- If completed as reported, Spotify's round values the company at $8.4B, more than twice the market cap of Pandora ($3.5B).
- How do the companies compare beyond that? Spotify earned more revenue in 2014 ($1.3B, vs. Pandora's $920.8M).
- Pandora said at year's end it had 81.5M active listeners. Around the same time, Spotify said it had about 45M free users and 15M paid subscribers ($9.99/month for no ads).
- Any valuation data points may be helpful for Pandora, as many analysts consider upcoming royalty-rate rulings a risky overhang for the stock.
- Previously: SunTrust weighs in on Pandora's rights fights (Apr. 09 2015)
- Previously: Axiom launches Pandora Media at Hold, citing heavy song-rate risk (Apr. 06 2015)
- Previously: Pandora up 3.4% as Miller notes 'monstrous discount' (Mar. 27 2015)
- Previously: Pandora up 2.9% as CRT Capital upgrades to Buy (Mar. 18 2015)
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
- Pandora (P -4.7%) has returned to earth after Friday's gossip-fueled 7.3% gain.
- Unsourced rumors that someone (again) was going to come buy the company went nowhere (so far ...): Jay-Z, who was subject to chatter about swooping in with a Pandora buy, had his bid for Sweden's Aspiro (parent of high-quality streaming services Tidal and WiMP) accepted late last week, though hope may have sprung eternal for those counting on a buyout.
- Updated 7:18 p.m.: Pandora closed today -5.3%, and is down another 0.1% after hours.
- Previously: Dougherty analyst: Pandora takeover rumor 'doesn't make any sense' (Mar. 13 2015)
- Previously: Pandora cruising, +8.9% on takeover chatter (Mar. 13 2015)
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