Pandora Media reported a lower-than-expected increase in the number of people tuning in to its Internet radio in the third quarter, sending its shares down more than six percent in extended trading.
Pandora Beats Street With Q3 Earnings, but Misses on Listener Growth
Number of listeners and listening hours fall short of analysts’ expectations.
Spencer Platt / Getty
The company’s active listeners rose 5.2 percent to 76.5 million in the quarter ended Sept. 30, but fell short of the average analyst estimate of 76.7 million, according to StreetAccount.
Total listener hours rose to 4.99 billion from 3.99 billion, but again fell short of the average analyst estimate of 5.02 billion, according to StreetAccount.
However, Pandora’s profit and revenue in the quarter beat market expectations, driven by accelerated advertising revenue growth on increased mobile revenue.
The company posted an adjusted profit of nine cents per share, on revenue of $239.6 million.
Analysts on average were expecting a profit of eight cents per share on revenue of $238.49 million according Thomson Reuters I/B/E/S.
(Reporting by Amrutha Penumudi in Bangalore; Editing by Savio D’Souza)
This article originally appeared on Recode.net.
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