Pandora Posts Profits & Listener Growth, But Wall Street Doesn’t Care
Despite growing competition, Pandora beat expectations managed strong growth in Q3 actually turning a profit of $638,000 compared to a loss of $1.77 million a year ago. The company reported quarterly revenue of $75 million, twice that of a year before and and up from $67 million in the second quarter.
Total listening hours hit to 2.1 billion hours, double the amount of a year ago and up from 1.8 billion in Q2. Active users grew to 40 million, up 65% from the previous year and 10% from the prior quarter. Pandora’s share of U.S. Internet radio hit 66% and its share of overall radio listening reached an impressive 4.3%, up from 2.1% a year ago.
But in late day trading Tuesday, Pandora shares fell 45 cents, or 4% to $11.40 after the company forecast a greater than expected loss for the next quarter. Pandora predicted revenue in a range of $80 million to $84 million which would lead to a loss of 2 cents to 4 cents per share in the next report.