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.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Pandora Media. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.