The music streaming company posted a loss of 21 cents per share in the fourth quarter. Analysts polled by Thomson Reuters had projected loss no greater than 7 cents per share.
Fourth-quarter revenue rose 7 percent to $395.3 million, beating analysts estimate of $376 million. The company posted a 63 percent increase in the subscription revenue. The company also said total subscriber grew 25 percent year-over-year to 5.48 million.
“Digital audio is on the verge of massive growth - music consumption is increasing, podcasts are gaining popularity and voice-activated devices are quickly becoming mainstream. Just like video, audio is transitioning from a one-to-many broadcast experience to a one-to-one model with personalization at the core. Pandora’s scale, listener engagement and data position us well to capitalize on these trends,” said Roger Lynch, CEO of Pandora. “From launching on-demand for our ad-supported listeners to expanding multiple device partnerships in the last quarter alone, we’re building a strong foundation for audience growth and improved monetization. These efforts will enable us to strengthen business fundamentals and reinvigorate Pandora in 2018.”
Pandora shares jumped over 9 percent in the extended hours trading Wednesday. But it eased most of its gains and was trading 8 percent lower on Thursday morning.