Pandora shares slide after weak outlook
Pandora shares initially dropped more than 13 percent in after-hours trading as the Internet radio company's outlook fell short of expectations. However, earnings and revenue beat forecasts and the stock clawed back much of its loss.
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The company reported a net loss of $5.4 million, and improvement on the year-ago loss of $7.8 million.
Earnings excluding items were 4 cents a share for the second quarter, exceeding the 2 cents expected and improving from the 3-cent loss per share in the year-ago period.
Adjusted revenue improved 58 percent to $162 million from $10 million a year ago.
Analysts had expected the company to report $156 million in revenue.
For the third quarter, Pandora expects non-GAAP earnings of 3 cents to 6 cents a share; analysts currently expect 8 cents a share.
Several analysts upgraded Pandora's stock ahead of the earnings release.
The company's shares, which fluctuated wildly for the first year after Pandora's June 2011 initial public offering, have surged to new highs in 2013, closing on Wednesday at $21.71.
This story has been updated to reflect that Pandora earnings beat expectations.