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Friday, October 25, 2013 1:44:34 PM
Maybe this has something to do with the small miss in revenue
How bad was the company's performance? Strangely, the performance was Quite Strong. It was the expectations that were too high. The company had issued guidance at the beginning of the year:
We have seen that our existing new car subscribers are turning over their vehicles sooner than what would have been predicted based on historical industry trends. As a result, our subscribers are migrating from one radio to another in a newer car. This trend picked up in the third quarter and is ahead of our expectations and this trend of faster turnover is good for the business long-term as it leads to increased opportunities for used car subscriptions, but we are now estimating self-pay net adds of approximately 1.5 million for 2013.
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