Pandora Shares Rise on Financial Results
The news comes as the service has shuttered its Australia and New Zealand operations.
Pandora's stock closed at $8.95 on Monday (July 31), giving the money-losing digital music company a market cap of $2.2 billion.
Pandora reported a bigger loss and falling listener hours, but the quarterly results announced Monday were apparently better than Wall Street anticipated, so the stock jumped 4 percent after the closing bell.
Unfortunately, the gain wasn't enough to offset a 5 percent loss during the regular session that was the result of the digital music company saying over the weekend it would be shutting down in Australia and New Zealand, which will leave it operating only in the U.S.
The company said it ended the second quarter with 76 million active listeners who accounted for 5.22 billion listening hours in the quarter, down from 5.66 billion hours in the year-ago quarter.
The company lost $275 million in the quarter compared to a $76 million loss the same quarter last year.
Revenue was a relative bright spot, as it increased 10 percent to $377 million, with advertising sales rising 5 percent to $278 million and subscription (and "other") revenue up 24 percent to $69 million. Pandora's subscribers rose from 3.93 million a year ago to 4.86 million.
Ticketing service revenue rose 31 percent to $30 million, but the company recently sold its Ticketfly business. Pandora also said recently that it was taking a $480 million investment from Sirius XM Radio.
Pandora ended the second quarter with $228 million in cash and investments, up from $203 million at the end of the first quarter. Pandora's stock closed at $8.95 on Monday, giving the company a market cap of $2.2 billion.
In the last year, Pandora has undergone something of an existential crisis as the market for on-demand music streaming has outpaced the service's algorithm-based internet radio service. That has left Pandora having to play catch-up launching its own on-demand streaming service just last March.
Pandora has also undergone major executive re-structuring. In late-June, the company's co-founder and CEO Tim Westergren exited along with chief marketing officer Nick Bartle and president Mike Herring. The company's current interim CEO is Naveen Chopra, Pandora's former CFO.
The closing of Pandora in Australia and New Zealand, its only international territories, was something of foregone conclusion with the company announcing in late-June it was winding down operations there. That followed the departure last March of Jane Huxley, who launched Pandora in Australia and New Zealand.
In a statement, a spokesperson for the company said that, “After analysis and consideration of external factors, we have decided to discontinue our operations in Australia and New Zealand and will shut down the service on July 31, 2017. While our experience in these markets reinforces the broader global opportunity long-term, in the short-term we must remain mindful and focused on the expansion of our core business in the United States
Additional reporting by Andy Gensler.
This article was originally published on The Hollywood Reporter.