Pandora’s Sales Forecast Falls Short as User Base StagnatesBy
Pandora Media Inc. forecast first-quarter sales below analysts’ estimates as the world’s largest online radio service struggles to prove it can find new ways to grow with its user base stagnating.
Revenue this quarter will climb to $320 million, Pandora said Thursday. That compared with the $341.6 million average of analysts’ estimates compiled by Bloomberg.
Pandora is investing in new businesses like on-demand streaming and ticket sales to expand beyond its main online radio business, which relies on advertising and subscriptions. The company reported active listeners of 81 million, a decline of 100,000 from the year before. The shares fell 3.3 percent to $12.21 in extended trading.
- Sales last quarter rose to $392.6 million, surpassing the $378.6 million forecast by analysts.
- Fourth-quarter advertising revenue grew 16 percent to $313 million
- Listener hours grew 0.4 percent to 5.38 billion
- Pandora added about 400,000 customers to its paid services