Pandora Media Inc. Q3 Revenue Up 40%; Beats Views

Pandora Media Inc

posted third-quarter revenue growth of 40 percent Thursday on a sharply narrowed net loss. The Oakland, Calif., Internet radio company beat expectations and raised its forecast for its fourth-quarter and full-year outlook. Yet Pandora fell more than 5 percent in after-hours trading to $21.92 a share. The company forecast fourth-quarter adjusted earnings of between $0.17 cents and $0.19 cents a share, on revenue of between $273 million to $278 million. Wall Street expects $0.17 cents a share on revenue of $272.75 million. In the recent period, advertising revenue grew 44 percent to $194.3 million, while subscription and other revenue increased 25 percent to $45.3 million. Gross profit increased 53 percent to $112.8 million while operating expense increased 33 percent to $114.8 million. The third-quarter net loss narrowed to $2 million, or $0.01 cent a share, from $4.1 million, or $0.02 cents a share a year earlier. Revenue grew to $239.6 million, from $169.3 million. Adjusted earnings equaled $0.09 cents a share. Analysts expected adjusted earnings of $0.08 cents a share on revenue of $238.5 million.