(Reuters) – Pandora Media (P.N) on Tuesday reported a smaller quarterly loss than Wall Street was expecting as the music streaming service lured more paid subscribers to its platform in a fiercely competitive market.
Shares of the Oakland, California-based company rose 4.5 percent to $7.04 in after-hours trading.
Pandora had about 6 million subscribers for Pandora Plus and Pandora Premium as of June 30, about 351,000 more than it did three months earlier.
Total subscription and other revenue soared 65 percent to $113.7 million, comfortably above financial analysts’ average estimate of $110.9 million, according to Thomson Reuters I/B/E/S.
But advertising revenue fell 2.6 percent to $271.1 million, missing analysts’ estimates of $261.6 million.
The results come as Pandora faces cut-throat competition from rivals including Sweden’s Spotify, Apple Music (AAPL.O) and Google’s (GOOGL.O) Play Music, all of which have are trying aggressively to attract new subscribers.
Pandora said net loss available to common stockholders narrowed to $99.5 million in the three months ended June 30, from $289.7 million a year earlier. Excluding one-time items, Pandora lost 15 cents per share.
Revenue climbed 2.1 percent to $384.8 million.
Analysts had expected a loss of 16 cents per share and revenue of $372.8 million.
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