Pandora Media, Inc.(P) reported its second quarter 2015 earnings on July 23, exceeding analyst expectations.

While the street predicted Pandora would generate an adjusted earnings of $0.02 per share on $283 million in revenue for the quarter, the company in fact generated an adjusted earnings of $0.05 per share on $283 million in revenue. The total revenue for the quarter reflected a growth of 30% year-over-year.

Pandora Chairman and CEO Brian McAndrews credited the company’s strong quarter to its success in advertising, stating, “Our advertising investments, particularly in local, are paying off. This quarter, local ad revenue reached an all-time high, driving record RPMs.”

The company’s ability to monetize on advertisements allows it to invest back into the company, thus improving the service and creating an “even more effective platform for helping artists grow their careers.”

Pandora executives forecast Q3 revenue to be in the range of $310 million to $315 million. Furthermore, they are expecting the company’s adjusted EBITDA to be in the range of $25 million to $30 million.

JMP Securities analyst Ignatius Njoko reiterated a Market Perform rating on Pandora, though the analyst did not provide a price target. While Njoko was encouraged by Pandora’s mobile trends, he prefers to “stay on sidelines until the company’s user trends accelerate and its royalty case concludes.”

Overall, Ignatius Njoko has a +15.7% average return per recommendation when measured over a one-year horizon and no benchmark.

On the other hand, RBC Capital analyst Mark Mahaney maintained an Outperform rating on the stock and decreased his price target from $25.00 to $24.00. While Mahaney acknowledged that “User growth and Listener Hours slightly missed expectations, partially due to positive algo/ interface changes,” Pandora’s “Revenue and EBITDA beat Street expectations on stronger Ad Revenue” leading to his bullish rating.

Mark Mahaney has has an overall average return of 24.0% per recommendation when measured over a one-year horizon and no benchmark.

Out of 15 analysts polled by TipRanks, 12 analysts are bullish on Pandora and 3 are neutral. The average 12-month price target for Pandora is $22.69, marking a 42.17% potential upside from where stock last closed.

On average, the top analyst consensus for Pandora on TipRanks is Moderate Buy.