Pandora Shares Rise on Financial Results
Pandora's stock closed at $8.95 on Monday, giving the money-losing digital music company a market cap of $2.2 billion.
Pandora reported a bigger loss and falling listener hours, but the quarterly results announced Monday were apparently better than Wall Street anticipated, so the stock jumped 4 percent after the closing bell.
Unfortunately, the gain wasn't enough to offset a 5 percent loss during the regular session that was the result of the digital music company saying over the weekend it would be shutting down in Australia and New Zealand, which will leave it operating only in the U.S.
The company said it ended the second quarter with 76 million active listeners who accounted for 5.22 billion listening hours in the quarter, down from 5.66 billion hours in the year-ago quarter.
The company lost $275 million in the quarter compared to a $76 million loss the same quarter last year.
Revenue was a relative bright spot, as it increased 10 percent to $377 million, with advertising sales rising 5 percent to $278 million and subscription (and "other") revenue up 24 percent to $69 million. Pandora's subscribers rose from 3.93 million a year ago to 4.86 million.
Ticketing service revenue rose 31 percent to $30 million, but the company recently sold its Ticketfly business. Pandora also said recently that it was taking a $480 million investment from Sirius XM Radio.
Pandora ended the second quarter with $228 million in cash and investments, up from $203 million at the end of the first quarter. Pandora's stock closed at $8.95 on Monday, giving the company a market cap of $2.2 billion.