Pandora's stock is climbing Friday after the digital radio company provided a stronger fourth-quarter revenue outlook and announced plans to cut approximately seven percent of its workforce.
Pandora said late Thursday that the job cuts, which would exclude Ticketfly, are being done to help trim overall operating costs. The Oakland, California-based company has been facing increasing competition from Spotify and Apple Inc.'s music service.
"While making workforce reductions is always a difficult decision, the commitment to cost discipline will allow us to invest more heavily in product development and monetization and build on the foundations of our strategic investments," said CEO Tim Westergren.
Pandora anticipates beating its previously announced forecast for fourth-quarter revenue in a range of $362 million to $374 million, citing its strong advertising performance. Analysts polled by FactSet expect $369.6 million.
Pandora Media Inc. is expected to report its fourth-quarter and full-year financial results on Feb. 9.
Updated 6:45 EST:: Its stock climbed 76 cents, or 6.33 percent, to $12.76 at the end of the day on Friday (1/13). Its shares are up roughly 27 percent over the past year.