Since 2011, Pandora Media has reported its biggest quarter of profit. Pandora Media, the operator of the top online radio service, had expected high profits after improving their advertising engines.
However, their first-quarter contained a wider loss than expected. Shares fell 8.7 percent to $32.71 in after-hours trading. Chief Executive Brian McAndrews stated that the company will continue to “aggressively invest” this year, by focusing on building revenue and attracting a bigger and broader audience.
The tight competition amongst online music services grows daily, although Pandora has clearly had no problems in that aspect. Pandora is still on top of the market, regardless of Apple and Google adding iTunes Radio and All Access to the rat race.
In Q4, Pandora posted a profit of $9 million, or a 4 cents a share, compared with $1.6 million, a year earlier. Revenue jumped 52 percent to $200.4 million, compared with analysts’ consensus estimate of $201.1 million. Pandora’s guidance for the current quarter was for a loss of 14 to 16 cents a share on revenue of $170 million to $176 million. Analysts were expecting a loss of 12 cents a share on $171.7 million in revenue.