Pandora narrows 1Q loss

OAKLAND, Calif. (AP) -- Pandora said Thursday that increased advertising and subscription revenue helped narrow its first-quarter loss.

But its outlook for second-quarter earnings fell shy of Wall Street expectations and its shares slipped in extended trading.

The Oakland, Calif.-based company reported a loss of $28.9 million, or 14 cents per share, for the quarter that ended March 31. That's compared with a loss of $38.7 million, or 22 cents per share, last year. On an adjusted basis it lost 13 cents per share versus 18 cents per share last year. Revenue jumped 69 percent to $194.3 million.

Analysts polled by FactSet were anticipating an adjusted loss of 14 cents per share on revenue of $177.7 million.

Pandora's first-quarter advertising revenue rose 45 percent to $140.6 million. Subscription and other revenue was $39.5 million, up 94 percent, excluding $14.2 million in revenue relating to its subscription return reserve.

Pandora faces tough competition from Spotify and other music-streaming services. But it said Thursday that total listener hours increased 12 percent to 4.8 billion for its first quarter. It had 75.3 million active listeners as of the end of March, up 8 percent from last year.

The company said it anticipates its adjusted earnings in the range of zero to three cents per share for its second quarter on revenue between $213 million and $218 million. Analysts were anticipating earnings of 5 cents per share on revenue of $218.3 million.

For the full year, Pandora forecast adjusted earnings between 14 and 18 cents per share on revenue between $880 million and $900 million. Analysts had predicted earnings of 16 cents per share on revenue of $895.7 million.

Shares of Pandora Media Inc. fell $1.35, almost 5 percent, to $26.85 in after-hours trading following the earnings report.