Pandora Media Inc (P) Shares Soar as Q4 Subscription Revenue Rises

Advertisement

Pandora Media Inc (NYSE:P) reported on its latest quarter after hours today, yielding positive results despite an earnings miss.

Pandora Media Inc (P)The music streaming service provider’s stronger point during its fourth quarter was its subscription revenue, which surged 63% year-over-year, bringing the 2017 total to $97.7 million. The metric is essential in measuring whether or not a music streaming service is growing.

Pandora also added 5.48 million subscribers during the year, which marked a 25% improvement compared to the year-ago period. For its fourth quarter, the company reported an adjusted loss of 21 cents per share.

The figure was well below analysts’ consensus estimate as Wall Street was calling for a loss of no more than 7 cents per share for the period, according to data compiled by Thomson Reuters.

Revenue was solid for Pandora as the company raked in $395 million during the period, ahead of the $376 million that analysts polled by Thomson Reuters called for.

The music company also said that it plans on investing $45 million into new growth initiatives, including ad-tech, non-music content, marketing technology and device integrations.

Pandora also has plans to expand on its “Premium Access” on-demand services in order to compete with other giants in the music streaming industry such as Spotify, which has a premium membership offering as well.

P shares climbed nearly 9.9% after the bell on the company’s strong quarterly results Wednesday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/02/pandora-media-inc-p-2/.

©2024 InvestorPlace Media, LLC