Dallas, Texas 11/26/2013 (Financialstrend) – Pandora Media Inc (NYSE:P) has had a successful run on the revenue sharing front on the mobile user front.
If Pandora’s third quarter results are point of evaluation, the numbers do all the talking. With revenues increasing to $180.4 million, a rise of50.3% in comparison to 2012, quarter three, Pandora overshot estimated revenue by analysts as well for the quarter at $178.3 million.
Subscriptions drive revenue
Pandora Media Inc (NYSE:P) highlight for the third quarter was the increase in the subscription revenues. The increase was an overwhelming 162.1% earning $36 million. Simultaneously, advertising revenue too increase to 35.8% translating to $144.3 million.
Expenses for Pandora Media Inc (NYSE:P) have proved to be tricky part of the financial balance sheet thus far.
Pandora’s need to acquire songs and other media content costs it nearly $87 million of its budget. Comparatively, this year’s content acquisition rates were down by 6.5 per cent in comparison to 2012.
Pandora Media Inc (NYSE:P) also saw a near match increase in expenses for its sales as well as marketing divisions.
But the forecast for the next quarter remains good.
Pandora expects to see $185 and $190 million earnings next year. It also expects to hold shares at prices between $0.02 and $0.04 per share. In the meanwhile, post estimates and evaluations by analysts, revenue earnings should be in the region of $185 million while non-GAAP per share value is expected at $0.04 per share. Pandora is poised on strong fundamentals with over $447.8 million in cash, several cashable short investments.
It expects to remain one of the most popular online radio services in the US. One of the first companies to offer internet-based radio, Pandora continues to drive standards in the industry. Subscription based services are niche and offer more personalized listening services. It also has a massive user base of non-subscription listeners who can tune into Pandora and have over a hundred for-you stations.
Pandora success has been the intuitive playlist of songs and media content that the service providers when users sign-in.