Pandora stock crashes more than 20% after third quarter loss

Pandora stock crashed on Thursday after hours, after the company posted a loss of $85.9 million in the third quarter.

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.