Pandora, an internet music giant has reported a downfall of 4% in initial after-hour trading a day after Pandora released its 4th quarter earning reports for 2016.
Pandora actually exceeded it’s expectations, but it was mean while working on the action plan because, last month company announced that it would overcame with it’s guide.Apparently, investors were looking for something better than this.
The stock loss gain came in at 13%, when the experts were forecasting a negative 21 percent. Revenues were $393 million,up from $374 million that Wall Street expected to receive. Revenues also increased 17 % over the same period last year.
In an statement, CEO and Founder Tim Westergren stated that “We have made significant progress in 2016 by pushing a leverage in our core business while accelerating the subscriptions to our paid product.”
Meantime half of Pandora’s users do not spend a single penny for its services, Pandora recentely released Pandora Plus and Pandora Premium to boost it sales and revenue. With an emphasis on skipping songs and better offline experience, Pandora think that the newly released features will help them to compete with Apple Music, Amazon and Spotify and many more.
The biggest part of its revenue comes from advertising, which provides $313 million more than 16 percent and it still increasing year by year. On the other hand the Pandora generates 60 million from it’s subscription based services nearly a 5% more than in the same period as compare to last year.
Pandora has been prone to sudden the gossip of acquisition and its shares rose by 58 % last year.
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