Boston, MA 02/04/2014 (wallstreetpr) – Pandora Media Inc (NYSE:P) is set to declare its 4Q13 results on February 5, 2014. Analysts expect the company to post encouraging results for the fourth quarter.
Result Expectation:
Pandora Media Inc (NYSE:P) has reached leadership position in the streaming radio segment in the U.S. There were fears that Apple Inc (NASDAQ:AAPL) would ruin the party with the launch of iTunes in September, 2013. The fears are expected to be laid to rest with the latest results. In fact, the company now accounts for 8% of all radio listening hours in the U.S. Analysts expect the company to declare earnings of $0.08 per share in the fourth quarter of 2013 against a loss of $0.04 per share in the same period last year. Let us also remember that Pandora has meet expectations twice in the last four quarters and exceeded them in the balance. Revenues are expected to jump by almost 52% to $649.04 million for the quarter against $427.14 million for the same period last year. Pandora generates revenues from display and audio advertising. It is now investing heavily in sales force to drive growth. The active listener base of 76 million is also very attractive though the company expects the usage growth to be overtaken by the monetization growth.
Improvement In Key Metrics:
Pandora Media Inc (NYSE:P) has seen improvement in key metrics; there has been a good growth in the mobile users and it has lead to improvement in mobile revenue per 1000 listening hours (RPMs). Listener hours increased by 13% to 1.58 billion in December. The good news is that this was also fueled by smartphone and tablet usage. In fact, the company has moved to cap free monthly listening hours to 40 for mobile users. This shows the confidence the company has in its user base.
Pandora Media Inc (NYSE:P) has been successful in competing against both Spotify as well as Apple’s iTunes. Investors will be looking at the future growth opportunities that are identified by the company.
