Pandora Impresses Wall Street With First Earnings Report Since IPO
The online radio company posts a loss but revenue surges as advertisers flock to the service.
Internet radio company Pandora announced quarterly earnings for the first time as a public company and its results were good enough for investors to bid shares higher in after-hours trading.
Pandora said Thursday it lost $1.8 million in its fiscal second quarter on revenue that surged 117 percent to $67 million, with $58 million coming from sales of advertising.
“Advertisers continue their adoption of Pandora’s multi-platform ad solutions, resulting in our sixth consecutive quarter of year-over-year triple digit revenue growth,” CEO Joe Kennedy said.
Total listening hours leapt 125 percent to 1.8 billion, and Pandora said it now claims 3.6 percent of the estimated U.S. radio audience, up from 1.8 percent a year ago.
The results were a rare bit of good news for investors, who witnessed the stock jump 63 percent the day Pandora’s stock debuted in June at $16 a share, but then watched the price be cut in half, and worse, over the next few months. On Thursday, the shares were up 3 percent to $12.47 and they rose another 4 percent after the closing bell.