Pandora Media Inc (NYSE:P) can officially kiss its multi-month rebound goodbye. Pandora stock is off by double-digits in the opening minutes of Thursday’s after-hour market session thanks to a second-quarter revenue miss and disappointing guidance.
For Q2, the streaming radio service reported 20% growth in revenues to $343 million, which missed analyst expectations for $351.6 million. The company also took a $76.3 million net loss, far deeper than the year-ago period’s $16.1 million loss. On an adjusted basis, a net loss of 12 cents per share of P stock did manage to beat estimates for a 16-cent deficit.
For the third quarter, Pandora now expects revenues in a range of $360 million to $370 million — Wall Street was hoping for $378 million — with EBIDTA expected to come between a $5 million loss and a $5 million profit. And for the full year, Pandora sees an EBITDA loss between $50 million and $70 million, as well as revenues of $1.385 billion to $1.405 billion — also below the analysts’ expectations for revs of $1.43 billion.
Pandora did improve its total listener hours 7% to 5.66 billion in Q2. However, active listeners actually dropped from 79.4 million in the year-ago period to 78.1 million.
Pandora stock responded with a decline of more than 10% almost immediately after the results were released. That came after a volatile Thursday trading day that saw shares on a Wall Street Journal report, citing sources that said Liberty Media Group (NASDAQ:LMCA) “floated” a buyout bid for $15 per share. However, the enthusiasm died off before the close, leaving P shares down almost 3%.
The dip comes just days after the stock scrawled out a death cross (where the 200-day moving average dips below the 50-day), and P stock now sits well below both averages, touching lows last seen during the February market slump.
As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.
