Pandora Media Inc on Monday reported better-than-expected quarterly revenue as advertisers spent more on the online music streaming service amid stiff competition.
REUTERS: Pandora Media Inc on Monday reported better-than-expected quarterly revenue as advertisers spent more on the online music streaming service amid stiff competition.
The company’s shares were up 5.3 percent in after-hours trading on Monday.
Pandora said advertising revenue rose nearly 5 percent to US$278.2 million in the second quarter, accounting for nearly three quarters of total revenue.
Analysts on average had expected ad revenue of US$268.4 million, according to financial data and analytics firm FactSet.
The company said it had US$68.9 million in subscription revenue. It also had 4.86 million total subscribers in the quarter, marginally up from the 4.71 million in the first quarter.
The company, which faces stiff competition from Spotify and Apple Inc’s Apple Music, said its net loss widened to US$275.1 million, or US$1.20 per share, in the quarter ended June 30, from US$76.3 million, or 33 cents per share, a year earlier.
The latest quarter included a goodwill impairment charge of US$132 million from a one-time write down related to its sale of ticketing firm Ticketfly early last month.
Excluding items, Pandora lost 21 cents per share, smaller than analysts’ estimate of 24 cents.
The company’s total revenue rose nearly 10 percent to US$376.8 million, beating the average analyst estimate of US$368.7 million, according to Thomson Reuters I/B/E/S.
Last month, Pandora Chief Executive Tim Westergren stepped down, signaling a shake up at the company where satellite radio company Sirius XM Holdings Inc invested US$480 million in early June.
Up to Monday’s close of US$8.95, Pandora’s shares had fallen 31.4 percent this year.
(Reporting by Aishwarya Venugopal and Pushkala A in Bengaluru; Editing by Maju Samuel)