Pandora stock crashes more than 20% after third quarter loss
REUTERS/Brendan McDermid
The stock hemorrhaged more than 20% after the market closed.
This loss was in line with analyst estimates, according to a survey of analysts conducted by the AP.
Revenue in the third quarter was $311.6 million, a 30% year-over-year increase, but slightly below analyst estimates of $312.4 million, the AP reports.
Advertising revenue for Pandora in the third quarter was $254.7 million, a 31% year-over-year increase, and subscription (and other) revenue was $56.9 million, a 26% year-over-year increase.
In the fourth quarter, Pandora forecasts revenue of $325 million to $330 million, less than $351.5 million, which was the average estimate of 28 analysts surveyed by Bloomberg.
On Thursday, Pandora also confirmed that it had reached a $90 million settlement with music labels over the streaming of audio and songs from before 1972.
Pandora still must face a pivotal Copyright Royalty Board (CRB) ruling in December, which will decide what royalties it will have to pay record labels.
Yahoo Finance
- Volumes up, values down: India's deal-making marks notable shifts in April
- 10 best kid-friendly summer vacation destinations in India
- “Are you accusing me of bullying the US?” jokes EAM S Jaishankar when asked about India-US relations
- As rain and snow events become more intense, so could our earthquakes, study finds
- India-EU FTA 'most difficult, complex' due to non-trade issues: EAM Jaishankar