Pandora Earnings Preview: No Respite From Losses Expected
Pandora is scheduled to release its Q2 fiscal 2016 earnings on July 21st and although we expect notable growth in revenues, it should be accompanied by a substantial increase in operating losses. Pandora’s monetization has been improving consistently, driving revenues upwards and we expect this trend to have continued in the recently concluded quarter. However, we expect operating losses to have soared for the second quarter, on account of the recent increases in royalty rates (0.02 cents per performance) and surging sales and marketing costs. The company itself expects its adjusted EBITDA to fall by $41 million year over year.
Also, we will keep an eye out for updates on the performance of Pandora’s newly launched music channels that feature “hand-picked” music. With the company’s user base nearing saturation, strategies to improve the content on offer make sense because they can provide users an incentive to become paying subscribers.
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Have more questions about Pandora? See the links below:
- By How Much Have Pandora’s Revenue & EBITDA Increased In The Last Five Years?
- How Has Pandora’s Revenue Composition Changed In The Last Five Years?
- What’s Pandora’s Fundamental Value Based On Expected 2016 Results?
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