Pandora earnings shine, listener hours are light

SAN FRANCISCO — Pandora reported earnings and sales that topped forecasts, but disappointed with its listener hours.

Shares (TICKER: P) fell 5% after hours.

The Internet radio provider said it made 9 cents in non-GAAP EPS in the third quarter, besting forecasts for 8 cents. Sales of $239.6 million, up 40%, were better than the $238.5 million forecast by analysts polled by Thomson Reuters.

The Oakland, Calif. based company said ad revenue surged 44% to $194.3 million, while subscription revenue gained 25%.

Its outlook was a mild positive. For the fourth quarter, it sees revenue between $273 million and $278 million compared to a mean of $272.75 million.

But listening hours -- which provide the inventory for advertising it sells -- disappointed some analysts. Total listener hours rose 25% to 4.99 billion for the third quarter. Mark Mahaney, at RBC Capital Markets, had expected 5.06 billion.