During the day, it went down as much as 8%. It closed down 2.85% at closing bell.
Last quarter, Pandora saw revenues of $US194.3 million, well ahead of the $US177.7 million analysts expected. Pandora also reported a loss of $US0.13 per share, which is a penny better than analysts expected.
The stock is likely tanking due to Pandora’s disappointing guidance for Q2. Its guidance ranged from break-even to a profit of $US0.03 per share on revenue $US213 million to $US218 million. But analysts were expecting a profit of $US0.05 per share on revenue of $US219 million.
Despite how investors reacted, Pandora is still growing. In Q1, listening hours grew 12% year-over-year to 4.8 billion. Pandora’s number of active listeners also grew 8% to 75.3 million people.