Pandora posts 1Q13 revenues of $80.8 million – Shares spike in after-hours trading

Today Pandora reported its first quarter earnings of its fiscal 2013 year, with revenues of $80.8 million, and a GAAP net loss per share of $0.12. Compared to the same quarter one fiscal year ago, Pandora’s revenues were up 58%. The per share loss was lower than what the Street anticipated.

The company reported that at the conclusion of the quarter, it had just over $80 million in cash, and cash equivalents. The company collected $70.6 million in advertising revenue, up 62% (YoY), and subscription and ‘other’ revenue of $10.2 million, up 38% (YoY).

In after hours trading, Pandora is up sharply, over 12% at the time of writing. Pandora listeners racked up more than three billion listened hours in the quarter. The company averaged more than 50 million active users each month of the time period.

What follows is the company’s full earnings statement.

“Pandora is off to an excellent start, exceeding our first quarter outlook and raising our expectations for the full fiscal year,” stated Joe Kennedy, Chairman & CEO of Pandora.  “This quarter Pandora averaged more than 50 million active users a month who generated more than 3.09 billion listening hours across Pandora’s multiple platforms – desktop, auto, consumer electronics, and mobile devices.  Consumers continue to embrace Pandora’s unparalleled personalized radio experience at an extraordinary rate, propelling Pandora’s market leadership to an all-time record share of 5.95% of total U.S. radio listening.  Advertisers want to be everywhere their consumers are.  They are moving quickly to speak with their target customers across the Pandora platform, with the majority of the top 50 digital advertisers in the U.S. already having bought multiplatform advertising on Pandora.  Pandora is the future of radio.”

Fiscal 1Q13 Financial Results

Total Revenue: For the first quarter of fiscal 2013, total revenue was $80.8 million, a 58% year-over-year increase.  Advertising revenue was $70.6 million, a 62% year-over-year increase.  Subscription and other revenue was $10.2 million, a 38% year-over-year increase.

Net Loss per Share:  For the first quarter of fiscal 2013, on a GAAP basis, net loss per share was ($0.12). Non-GAAP net loss per share was ($0.09), excluding approximately $5.5 million in stock-based compensation. Both GAAP and non-GAAP calculations are based on 165.4 million weighted average basic shares outstanding and assume minimal tax expense due to our net operating loss position.

Cash: The Company ended the first quarter of fiscal 2013 with $80.6 million in cash, cash equivalents and short-term investments, compared with $90.6 million at the end of the prior quarter.  Cash used in operating activities was approximately $10.6 million for the first quarter of fiscal 2013, compared to $2.8 milliongenerated in the year-ago quarter.

Other Business Metrics

Total listener hours: Total listener hours grew 92% to approximately 3.09 billion for the first quarter of fiscal 2013, compared to approximately 1.6 billion for the first quarter of fiscal 2012.

Guidance

Based on information available as of May 23, 2013, the company is providing financial guidance for the second quarter and fiscal year 2013 as follows:

2Q13 Guidance: Revenue is expected to be in the range of $99 million to $101 million. Non-GAAP net loss per share is expected to be between ($0.03) and ($0.05). Non-GAAP net loss per share excludes stock-based compensation expense, assumes minimal tax expense given our net operating loss position, and 168 million weighted average basic shares outstanding for the second quarter fiscal 2013.

Fiscal 2013 Guidance: Revenue is expected to be in the range of $420 million to $427 million. Non-GAAP net loss per share is expected to be between ($0.07) and ($0.11). Non-GAAP net loss per share excludes stock-based compensation expense, assumes minimal tax expense given our net operating loss position, and 169 million weighted average basic shares outstanding for fiscal 2013.

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