Boston, MA 09/03/2014 (wallstreetpr) – Pandora Media Inc (NYSE:P)’s CEO, Mike Herring, believes that the best of the Internet radio service company is yet to come in the latter part of 2014. He said the company is poised to deliver fabulous results in the back half of the year, meaning the continuation of strong performance as recorded in the recently released 2Q2014 in which the company surpassed revenue estimates. The CEO discussed the company’s past, present and the future on Fox Business.
Advertising revenue momentum
Pandora is witnessing an increase in advertisement revenue opportunities, which the CEO said accounts for 80% of their revenue. The company also makes money from subscriptions. According to Herring, their mobile advertising business and local radio advertising are witnessing exciting momentum. The two advertising segments recorded impressive year-over-year growth at more than 50% for the mobile division and 140% for the local radio advertising business.
Based on the revenue momentum that is building up in the business, the management of Pandora Media Inc (NYSE:P) moved to adjust upwards their full year performance expectation. The improvement in 2014 guidance was also supported by a widely strong 2Q, in which the company reported 43% increase in overall revenue from a year earlier to $218.90 million. The revenue figure also surpassed the consensus estimate at $218.54 million.
Competition building up
Pandora Media Inc (NYSE:P) is a leader in the U.S. online radio service where it controls 70% of the market share. However, the company also faces competition from players like Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) and Amazon.com Inc. (NASDAQ:AMZN) that are also increasing their foothold in streaming music service.
On the average, Pandora carries a consensus “Buy” recommendation and a target price of $34.99, according to the observation of 25 rating firms. Pandora Media Inc (NYSE:P)’s stock is held by hedge funds such as Julian Robertson’s Tiger Management, which according to the latest 13F filings, owns 39,500 shares of Pandora Media Inc (NYSE:P).
