Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Pandora Media (NYSE:P) fell by more than 13% during intraday trading Friday after the Internet radio specialist reported mixed second-quarter earnings.

So what: For the quarter, non-GAAP revenue grew 58% year-over-year to $162 million, beating expectations for sales of just $156.22 million. Meanwhile, even though Pandora lost $0.04 per share on a GAAP basis, adjusted earnings per share came in at $0.04, also beating analysts' expectations for a profit of $0.02 per share on the same basis.

Now what: Going forward, Pandora told investors to expect third-quarter non-GAAP revenue in the range of $174 million to $179 million, with non-GAAP diluted earnings per share between $0.03 and $0.06. However, while analysts on average were expecting third-quarter sales of just $170.46 million, they were also looking for adjusted earnings of $0.08 per share.

After all, all the revenue in the world doesn't mean much if a company can't eventually translate it to decent profits -- especially as that revenue growth begins to slow. In the end, until Pandora can show investors it can slow its cash burn and start improving margins, it may be a wise decision to stay on the sidelines.