Pandora Impresses Wall Street With First Earnings Report Since IPO

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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.

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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.

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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.

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