Pandora stock (NYSE:P) ended the day with a bang as the company reported its latest quarterly earnings results after hours, which were better than what analysts were calling for in their consensus estimate.
The online music streaming service and app said that for its third quarter of fiscal 2018, it brought in adjusted earnings at a loss of 6 cents per share, which is stronger than the adjusted loss of 11 cents per share that analysts were calling for. The company added that its non-GAAP gross margins for the period were up 500 basis points sequentially.
Pandora stock also benefited from the company impressing on the revenue front during the period, bringing in sales of $417.6 million, ahead of the $401.29 million that analysts were calling for. Revenue was also 16% higher during the company’s period compared to its results during the third quarter, excluding in Australia and New Zealand & Ticketfly.
The company’s subscription revenue for the period surged to $125.8 million, marking a growth of 49% compared to its year-ago quarter. Pandora added that its advertising revenue for the period tallied up to $291.9 million, while its ad RPM reached an all-time high of $77.83, increasing 11% year-over-year.
P stock is up about 2.1% after the bell on Monday following the company’s strong earnings showing as it gets closer to the end of its fiscal 2018. Shares had been sliding about 0.2% during regular trading hours on the day in anticipation of the company’s quarterly results.