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Pandora [NYSE:P] Q2: No User Growth, Revenue Up and A Yawn From Wall Street [UPDATE]

Pandora-new-logo-image-001UPDATED: Pandora shared Q2 Monday, and despite music streaming exploding globally, active users remained flat at 76 million. Pandora did report better than expected returns and growth in revenue, paid subscriptions and average monthly listener days. That sent the stock upward briefly, before falling back to close 2.46% lower than prior to the Q2 report. EARNINGS & USER HIGHLIGHTS:

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Key Pandora Q2 User Base Metrics:

  • Total monthly active users = 76M (reported last quarter = 76M)
  • Total paid subscribers (across Pandora Plus & Premium) = 4.86 million / 24% YoY increase
  • Listeners tuning in an average 26 days per quarter / approx 23 hours per month
  • Continues to rank #1 as highest trafficked mobile brand over Spotify, SoundCloud and YouTube (comScore, June ’17)

Key Pandora Financial Metrics:

  • Q2 revenue was $376.8 million / 10% YoY increase – above the high end of our guidance range of $360 million to $375 million
  • Adjusted EBITDA loss was $54.3 million – above the midpoint of our guidance range of $65 million to $50 million
  • Q2 ad revenue was $278.2 million / 5% YoY increase (local ad revenue made up more than 30% of this)
  • Q2 subscription revenue was $68.9 million / 25% YoY increase

"We have taken a number of steps to hone the company’s strategy and position Pandora to continue to build audience and extend monetization through a combination of advertising and subscription revenue streams. In addition to exceeding our revenue expectations this quarter, we also announced several important strategic moves including a $480 million investment from Sirius XM, the sale of Ticketfly, and changes to our board and management team," said Naveen Chopra, CFO and interim CEO of Pandora. "We remain laser-focused on execution that attracts listeners and investments that drive the growth and monetization of our audience."

Read the full Q2 report here.