Pandora Cuts Guidance; Some Analysts Concerned
Some analysts have concerns about Pandora growth prospects, as it scaled back from revenue guidance of $1.5 billion-$1.65 billion for the year to $1.45 billion-$1.5 billion and Q3 revenue to $370 million-$385 million. Revenue advanced 10 percent over Q2 2016…
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to $376.8 million as paid subscribers jumped 24 percent, said the company Monday. Recent management changes (see 1706270031) “create uncertainty” and subscription numbers are expected to grow more slowly as Pandora focuses on overall audience growth, Wedbush Securities' Michael Pachter wrote investors Tuesday. Chief Financial Officer and interim CEO Naveen Chopra said lower guidance reflects the plan to prioritize growth and retention of active users “rather than aggressively pushing all users to subscriptions,” a projected $50 million-$55 million loss of revenue from the sale of Ticketfly and the closing of some Pandora international operations. Cowen & Co.'s John Blackledge later cited “a ton of moving pieces” and remained “cautious” on the company. Pandora shares closed down 3.35 percent Tuesday at $8.65.