Pandora Stock Rose Almost 29% on Earnings Beat Last Month



Pandora’s stock performance

Shares of music streaming company Pandora (P) rose almost 29% in May and closed at $7.22. The stock is currently trading at $7.45, which is 82% higher than its 52-week low of $4.09 and 25% lower than its 52-week high of $9.98.

Pandora has generated a return of -19% in the last 12 months after falling 63% in 2017.

Q1 2018 revenue beat guidance and analysts’ estimates

Pandora reported its Q1 2018 results on May 4, and shares of the company rose almost 20% on the day. The company reported revenue of $319.2 million, a rise of 1% YoY (year-over-year) in the quarter. This was higher than its own guidance of between $295 million and $305 million and 5% higher than analysts’ consensus estimate of $304.3 million.

The company’s non-GAAP (generally accepted accounting principles) EPS were -$0.27, higher than analysts’ consensus estimate of -$0.38, in Q1 2018. After adjusting for its Ticketfly sale and the closure of its ANZ (Australia/New Zealand) business, Pandora’s revenue growth was 12% in Q1 2018.

Pandora’s number of subscribers for its Pandora Plus ($4.99 per month) and Pandora Premium ($9.99 per month) plans rose 19% YoY. The company’s total number of paid subscribers at the end of Q1 2018 touched 5.6 million.

Comparatively, Apple Music recently reached 50 million subscribers, while Spotify (SPOT) has 75 million paid subscribers.

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