iOS is one of the two major platforms for Pandora, and it will now have to compete with a very similar product offering in the ‘Music’ apps.Įven more worrying, advertisers could move from Pandora to iTunes Radio ads, effectively menacing Pandora’s bottom line. It was indeed the case, but this second quarter is the last one before the introduction of iTunes Radio and Pandora’s future looks gloomy.Īs the company notes, $116 million out of its $162 million reported revenue, or 71.6 percent, comes from its mobile apps. Over the past seven days, most analysts expected Pandora to report stronger revenue and profit than anticipated. Yet, the big elephant in the room is iTunes Radio. Pandora is careful with its Q3 estimates, as it expects between $174 million and $179 million in revenue with non-GAAP earnings per share between $0.03 and $0.06 after three quarters in the red. Even though revenue is increasing, people are listening less to Pandora. Yet, Pandora reported 4.18 billion listening hours last quarter. Now 71.2 million users strong, the company reported 3.88 billion listening hours over the quarter, representing an 18 percent year-over-year increase. Pandora managed to beat on revenue but was disappointing on earnings. The company reported non-GAAP EPS of -$0.04, a $7.8 million net loss.Īnalysts expected revenue of $156 million and non-GAAP earnings of $0.02 per share. Total revenue increased 58 percent year-over-year to $162 million. Streaming radio platform Pandora just released its second-quarter earnings, and it largely beat the street’s expectations.