Pandora Music's shares rose in after-hours trading tonight after it's earnings exceeded analyst expectations in the second quarter.
The music streaming service reported a total consolidated revenue of $376.8m (£285m), up 10 per cent on the previous year, but its GAAP net loss widened to $247.1m compared with a loss of $76.3m the previous year, due to one-time expenses.
The number of total paid subscribers to Pandora increased to 4.86m from 3.93m in the second quarter of 2016, growing around 24 per cent year-on-year.
Shares in Pandora shot up more than seven per cent in after-hours trading after closing down more than five per cent in the day.
Why it's interesting
Earlier this year, Pandora was thought to be a takeover target by satellite radio provider Sirius XM, but instead a smaller deal was eventually made with Sirius taking a minority stake in the company.
The company's chief executive, Tim Westergren, also stepped down at the end of June.
Pandora's stock has fallen more than 30 per cent over the course of the year, and at around $9 it is well blow its all-time high of nearly $40 in 2014.
News also emerged today that Pandora will no longer serve customers in Australia or New Zealand, which hit its shares.
What Pandora said
Naveen Chopra, chief financial officer and interim chief executive of Pandora, said:
We have taken a number of steps to hone the company’s strategy and position Pandora to continue to build audience and extend monetisation through a combination of advertising and subscription revenue streams.
In addition to exceeding our revenue expectations this quarter, we also announced several important strategic moves including a $480m investment from Sirius XM, the sale of Ticketfly, and changes to our board and management team.
We remain laser-focused on execution that attracts listeners and investments that drive the growth and monetisation of our audience.