OAKLAND (CBS / AP) — Pandora’s stock is climbing before the opening bell Friday after the online radio company provided a stronger fourth-quarter revenue outlook and announced plans to cut approximately 7 percent of its workforce.

Pandora said late Thursday that the job cuts, which would exclude Ticketfly, are being done to help trim overall operating costs. The Oakland, California-based company has been facing increasing competition from Spotify and Apple Inc.’s music service.

READ MORE: Lockdown-Violating Underground Gatherings Investigated Over Recent Spate of San Jose Shootings

Pandora anticipates beating its previously announced forecast for fourth-quarter revenue in a range of $362 million to $374 million, citing its strong advertising performance. Analysts polled by FactSet expect $369.6 million.

READ MORE: The Game Changer: New Test Helps Doctors Find Hidden Prostate Cancer

Pandora Media Inc. is expected to report its fourth-quarter and full-year financial results on Feb. 9.

Its stock gained 95 cents, or 7.9 percent, to $12.95 in premarket trading.

MORE NEWS: Oakley School Board Interim Trustees Vote to Fill Vacant Seats; Reject Special Election

© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.