Pandora Media posted quarterly revenue beyond expectations following a boost in advertiser spending.
The company’s advertising revenue jumped almost 5% to $278.2 million during the second quarter of the year. Analysts had forecast $268.4 million. The results are notable given that Pandora faces stiff competition from the likes of Spotify or Apple Music.
In addition, its subscriptions brought in $68.9 million, falling short of an expected $72.8 million. Total revenues rose 10% to $376.8 million, ahead of an estimated $368.7 million.
Company shares climbed 1.4% in after-hours trading on Monday.
Naveen Chopra, CEO of Pandora said:
“Going forward, we expect the trend in our advertising business to continue to improve.”
The music app now expects its revenue for 2017 to reach $1.50 billion. That’s slightly below previous forecasts of $1.65 billion, and likely due to the sale of its Ticketfly business.
Pandora is currently having to deal with a management shakeup as CEO Tim Westergren stepped down in June. This could be good news for the company which has been focusing mainly on subscriptions. Strategy-wise the next CEO could be revamping things at Pandora to boost ad revenue further.
However, despite positive ad revenue results, the digital radio service announced the shut-down of its Australian and New Zealand app and website services as of July 31. Around 5 million registered users in the territory will be losing access to their accounts. Designed to help cut costs, the move may have a negative effect on the company’s global active monthly listener figures.