UPDATE 1-Pandora's revenue beats estimates on mobile ads
Nov 21 (Reuters) - Pandora Media Inc reported third-quarter revenue that was up about 50 percent on the strength of mobile advertising at the Internet radio company to top $100 million for the first time in a quarter.
Mobile advertising is an important revenue source for Pandora as more people choose to listen to music on smartphones.
Shares fell about 2 percent in after-hours trading, which one analyst blamed on the company providing a complicated financial forecast. Pandora is moving its fiscal year to end in December 31, instead of January 31, so it provided two earnings forecasts instead of one, which may have thrown off investors, said Wedbush Securities analyst Michael Pachter.
"The stock is down because people are looking at these numbers and aren't really sure what it means for the outlook and it's honestly not bad," Pachter said.
Almost a decade old with 70.9 million active listeners, Pandora is one of the most popular streaming music services in the world. It makes its money primarily from advertising, but it faces stiff competition from the likes of Apple Inc, Spotify and Sirius XM Radio Inc.