Pandora loss shrinks as revenue rises

August 29, 2012

Internet radio firm Pandora on Wednesday reported that its revenue climbed in the recently-ended quarter but that it still lost money due in large part to royalties paid out for songs.

The Oakland, California-based Pandora, which creates personalized radio stations for users, reported a net loss of $5.4 million on revenue that rose 51 percent to $101.3 million compared with the same period last year.

"This quarter exceeded our expectations as our strong momentum continues with both listeners and advertisers," said Pandora chief executive Joe Kennedy.

"In particular, this quarter demonstrated that our mobile monetization strategies are working."

Revenue from people using Pandora's service on mobile devices rose 86 percent to $59.2 million in the quarter when compared to the prior year.

Pandora shares leapt more than nine percent to $11.03 in after-hours trading on the .

Income from subscriptions was up 36 percent to $11.9 million while climbed 53 percent to $89.4 million.

Ranks of active Pandora users swelled 48 percent to 54.9 million, with people listening to a total of 3.3 billion hours of music in an 80 percent climb from the same quarter last year.

Pandora expected to bring in from $115 million to $118 million in the current quarter and to break even or show a slight profit, but to finish the fiscal year with an overall loss.

Pandora gets revenues from advertisers and from users who pay for premium services.

went public last year at $16 a share, one of several Internet companies to make their debut on Wall Street last year.

Explore further: Pandora hopes IPO will raise $123 million

Related Stories

Pandora hopes IPO will raise $123 million

June 3, 2011

Pandora Media Inc., which announced plans earlier this year to sell its stock in an initial public offering, said it and its investors were seeking to raise as much as $123 million - an amount that would value the Internet ...

Pandora net loss widens but revenue up sharply

August 26, 2011

Internet radio company Pandora on Thursday posted its first quarterly earnings since going public, reporting a wider net loss but revenue that more than doubled on solid advertising growth.

Recommended for you

Inferring urban travel patterns from cellphone data

August 29, 2016

In making decisions about infrastructure development and resource allocation, city planners rely on models of how people move through their cities, on foot, in cars, and on public transportation. Those models are largely ...

How machine learning can help with voice disorders

August 29, 2016

There's no human instinct more basic than speech, and yet, for many people, talking can be taxing. 1 in 14 working-age Americans suffer from voice disorders that are often associated with abnormal vocal behaviors - some of ...

Apple issues update after cyber weapon captured

August 26, 2016

Apple iPhone owners on Friday were urged to install a quickly released security update after a sophisticated attack on an Emirati dissident exposed vulnerabilities targeted by cyber arms dealers.

Auto, aerospace industries warm to 3D printing

August 25, 2016

New 3D printing technology unveiled this week sharply increases the size of objects that can be produced, offering new possibilities to remake manufacturing in the auto, aerospace and other major industries.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.