Mobile Listening Cap Fuels Pandora Growth

Pandora has had a busy first quarter. In March, the social radio company saw its long-time CEO Joe Kennedy abruptly step down, leaving the board to scramble to find a replacement. On the bright side, Kennedy’s exit, while likely a result of stress, followed relatively good times for Pandora. And. According to telecrunch.com,  it’s continued to push forward since.

Pandora launched an ad-free version for Windows 8 in March, surpassed 200 million users (with over 140 million accessing Pandora via mobile) in April, then launched a “Premieres” station for U.S. users and deepened its Facebook integration with a new Timeline App.

Thursday, Pandora’s first quarter earnings reflected this flurry of activity, as the company saw GAAP total revenue increase 97 percent year-over-year to $83.9 million (with non-GAAP mobile revenue of $86.7 million), which outpaced mobile listener hour growth at 47 percent year over year. Meanwhile, total revenue came in at $125.5 million, representing 55 percent year-over-year growth and non-GAAP total revenue of $128.5 million. Pandora had a net loss of $28.5 million, or 16 cents per share, compared with a loss of $20.2 million, or 12 cents per share, in the year-ago period.

What’s more, share of total U.S. Radio listening for Pandora grew to 7.33 percent in April — an increase from 5.86 percent in the same period last year.

Of his company’s performance, Kennedy said: 

"Mobile listening hours and mobile ad revenue reached record highs, with growth in mobile ad revenue exceeding growth in mobile listening hours. During the quarter, we successfully implemented a mobile listening limit, enabling us to manage our content acquisition costs with minimal impact on listenership or revenue growth. Pandora’s subscriber base surpassed 2.5 million, adding more net new subscribers in the quarter than in all of fiscal 2013, giving Pandora the largest US streaming subscriber base of any music service."

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