- REUTERS/Brendan McDermid
Pandora stock crashed more than 30% after the company posted a loss of $85.9 million in the third quarter.
The stock hemorrhaged over 20% in the hours after the market closed, and continued to fall through the night. On Friday morning, the stock was down more than 30% pre-market.
Pandora’s loss in the third quarter 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. However, Pandora’s customer acquisition costs more than doubled, according to Fortune.
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.
- Yahoo Finance