Pandora Cuts Jobs, Projects Strong Fourth Quarter -- 2nd Update
January 12 2017 - 8:52PM
Dow Jones News
By Josh Beckerman
Pandora Media Inc. will reduce its U.S. employee base, excluding
Ticketfly, by about 7% by the end of the first quarter, as part of
a commitment to cost discipline.
Pandora said its revenue for the quarter ended Dec. 31 will be
above its guidance amid strong advertising performance. In October,
Pandora lowered its 2016 revenue guidance and projected revenue
between $362 million and $374 million for the quarter.
In after-hours trading, Pandora shares rose 7.75% to $12.93.
The ad-free Pandora Plus tier, which debuted in September and
charges $5 monthly, generated more than 375,000 net new subscribers
by the end of December. Over all, Pandora now has more than 4.3
million paid subscribers.
Pandora Premium, set to launch during the first quarter, will
give subscribers unlimited access to tens of millions of tracks,
much like Spotify AB, and Apple Inc.'s Apple Music.
Pandora Plus marked the company's first offering using direct
music licensing from the major record companies. Pandora's main
radio service uses compulsory government licenses, which allow
online broadcasters to pay rates determined by federal copyright
judges as long as listeners don't get to pick specific songs or the
order in which they play.
Pandora also said results will be better than expected for its
adjusted loss before interest, taxes, depreciation and
amortization, which was projected between $39 million to $51
million.
Pandora expects costs of $4 million to $6 million for the job
cuts, mostly in the first quarter.
In November, Pandora said it was seeking a full-time chief
financial officer to report to Mike Herring, who serves as both
president and CFO. Last month, Sara Clemens resigned as chief
operating officer.
--Hanna Karp contributed to this article.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
January 12, 2017 20:37 ET (01:37 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Apr 2023 to Apr 2024