Pandora Rises After Revenue, Earnings Grow on Subscriber GainsBy
Pandora Media Inc. rose in extended trading after the online music service posted sales and adjusted earnings that exceeded Wall Street estimates.
Shares of the Oakland, California-based company gained as much as 11 percent before a tepid forecast for the current quarter narrowed the advance. The stock was up 6.2 percent to $5.17 at 6:05 p.m. in New York.
Despite leaving the ticketing business, Pandora managed to scratch out more revenue in the fourth quarter, thanks to a doubling of its subscription sales. The company introduced on-demand, paid services in 2017 to compete with Spotify and Apple Music. Pandora finished the year with 5.48 million paying customers.
Ad revenue declined slightly following Pandora’s exit from Australia and New Zealand. The company recently announced job cuts as part of a realignment that includes expanding operations in Atlanta.
Sales this quarter will be as much as $305 million, executives said on a call. That’s below the $320.9 million average of analysts’ estimates.
Fourth-quarter revenue rose to $395.3 million, the company said Wednesday in a statement, beating analysts’ estimates. Pandora earned $5.83 million before interest, taxes, depreciation and amortization, also topping Wall Street forecasts..
Pandora posted a net loss of $52.1 million, or 21 cents a share, for the quarter, narrower than a year earlier.