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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.