Pandora Media on Thursday reported mixed quarterly results.
Here’s how the company did compared with what Wall Street expected:
- Loss per share: 6 cents vs. 8 cents expected, according to Thomson Reuters
- Revenue: $379 million vs. $380.6 million expected, according to Thomson Reuters
- Active listeners: 73.7 million vs. 74.6 million expected, according to StreetAccount
- Listener hours: 5.15 billion vs. 5.16 billion expected, according to StreetAccount
within the year-ago quarter, the company reported an adjusted loss per share of 7 cents on revenue of $351.9 million.
Advertising revenue, which accounts for the bulk of Pandora’s overall revenue, grew 1 percent year over year although missed analyst expectations. Pandora reported $275.7 million in advertising revenue, which came in below analyst expectations of $289.3 million, according to StreetAccount.
Pandora said of which despite an increase in its average cost per ad, of which sold fewer ads within the quarter.
In a conference call with investors following the earnings Discharge, CFO Naveen Chopra said the company expected the headwinds affecting Pandora’s advertising revenue within the third quarter, such as limitations in its ad technology, to continue within the fourth quarter.
“There’s no silver bullet of which’s going to come in along with solve these problems,” CEO Roger Lynch said. He said investments in ad targeting along with reporting technology would certainly start to have an effect throughout 2018.
The company reported 73.7 million active listeners within the third quarter, down coming from 77.9 million within the same period a year ago, a decrease for the third straight quarter. Listener hours were reported as 5.15 billion, down coming from 5.4 billion reported within the year-ago quarter.
The stock fell more than 6 percent in after-hours trade. The stock has struggled of which year, falling more than 44 percent so far.
The company reported of which total subscribers reached 5.19 million within the quarter, representing 29 percent year-over-year growth. Wall Street had expected the company to report 5.04 million subscribers, according to StreetAccount.
In October, premium subscribers crossed 1 million.
A recent survey by consumer marketing firm Fluent found of which Pandora is usually the second-most-well-known audio streaming service within the United States after YouTube. About two-thirds of respondents who listen to streaming audio use Pandora, the survey said.
Yet the music streaming market has become increasingly competitive. The Oakland, California-based company has to fend off digital music companies such as Spotify along with Deezer, as well as giants such as Apple, Google along with Amazon.
Amid of which competition, Pandora has struggled to monetize its user base.
In March, the company launched a premium service for $9.99 a month. of which offering lets users search for specific tracks along with albums directly, allowing the company to better compete with those offered by Spotify along with its competitors.
In June, the music provider announced a $480 million investment coming from SiriusXM after rebuffing an offer to buy the company outright. within the same month, the company’s co-founder along with CEO Tim Westergren announced his plans to step down.
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