PANDORA SHARES COLLAPSE AFTER HOURS

pandora fall update iOS

Photo: Kevin Smith/Business Insider

Pandora shares are down 20 per cent in after-hours trading following disappointing guidance in their fiscal Q3 financial results.For Q4, management expects revenue of $120 million to $123 million, which is well below analysts’ estimates calling for $130 million.

The company also expects to report a per-share net loss of $0.06 to $0.09.  Analysts were expecting a net profit of $0.02 per share.

Pandora’s recently completed quarter wasn’t too bad.  Q3 revenue surged 60 per cent year-over-year in $120.0 million, which was a bit higher than analysts’ expectation for $117 million.

Q3 earnings excluding items came in at $0.05 per share versus the expectation for $0.01 per share.

Active users surged 47 per cent year-over-year to 59.2 million.

“This quarter exceeded our expectations as we monetized mobile at record levels and grew total mobile revenue 112%,” said CEO Joe Kennedy.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.