Pandora Shares Fall Despite Better-Than-Expected Earnings

Pandora CEO Brian McAndrews
Pandora CEO Brian McAndrews
 AP Images

Shares of Pandora Media were sinking as much as 9 percent in after-hours trading on Thursday, even though the digital-music company posted quarterly earnings that exceeded the expectations of analysts.

Pandora said Thursday that it lost $28.9 million during the first quarter, or 13 cents a share when adjusted, which is a penny better than predicted. Revenue was $194.3 million, well ahead of the $177.7 million that analysts expected.

In the same quarter a year ago, Pandora lost 22 cents a share on $115.1 million.

STORY: Record Labels Sue Pandora Over Pre-1972 Recordings

Also on Thursday, the company raised its full-year guidance, predicting it will earn up to 18 cents a share on up to $900 million in revenue.

During the regular session Thursday, shares of Pandora were up 3 cents to $28.20.

Pandora said it had 75.3 million active listeners at the end of March, up 8 percent at the same time last year. Listening hours in the first quarter grew 12 percent year-over-year to 4.8 billion.

"We will continue to invest aggressively to extend our leadership position and drive forward the future of radio," Pandora CEO Brian McAndrews said.

comments powered by Disqus