Says Sales Growth Will Slow
Less than a week after appointing a new CEO, Pandora said Monday it plans to sell 10 million shares
valued at $230.8 million to fund capital expenditures and acquisitions.
According to Forbes, it also expects its sales growth rate
to decline as the business matures, royalties continue to eat into revenue and
new competitors come onto the scene.
The shares fell 4.75 percent in late trading.
“We expect to invest heavily in our operations to support
anticipated future growth. As a result of these factors, we expect to continue
to incur annual losses on a U.S. GAAP basis in the near term,”the Oakland,
California-based company said in a regulatory filing. “Our revenue increased
rapidly in each of the fiscal years ended January 31, 2007 through January 31,
2013; however, we expect our revenue growth rate to decline in the future as a
result of a variety of factors, including increased competition and the
maturation of our business, and we cannot assure you that our revenue will
continue to grow or will not decline.”
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