Pandora reports revenue growth of 60% over prior year, but forecast has investors heading for the exits
The Internet radio service Pandora reported Q3 earnings this afternoon, reporting that revenue great at a brisk pace. But it was its revenue forecast that is causing investors to dump the stock in after hours trading.
Pandora reported that total Q3 revenue grew more than 60 percent to $120.0 million in the quarter, while mobile revenue more than doubled to $73.9 million. Active listeners continued to grow and the company now claims 59.2 million.
The company reported net income of $2.052 million, or $0.01 per share. For the year the company has lost $23.591 million. The company says it still has a little over $80 million in cash on hand.
But the Q4 revenue forecast is between $120 million and $123 million, and that is not making investors happy. The stock, which closed today at $9.45 per share, is currently at $7.80, a drop of over 17 percent in after hours trading.