Pandora Revenues Rise 70% ... But Still In The Red
April 24, 2014 at 3:49 PM (PT)
PANDORA MEDIA INC reported a better-than-expected revenue increase of almost 70% to $194.3 million in Q1, thanks to increased advertising, REUTERS reports. That beating analysts expectations of $175 million.
"We had a very strong quarter," PANDORA CFO MICHAEL HERRING said. "It was a seasonally difficult quarter, but it just shows our advertising business is kicking into high gear."
Advertising revenue rose 45% to $140.6 million. Mobile ad revenue was up 59% at $103 million. Even with all these increases, however, PANDORA reported a net loss of $28.9 million compared with a loss of $38.6 million during the same quarter last year. The likely reasons: PANDORA spent more on building its ad sales staff and content acquisition costs rose to $108.2 million in the first quarter compared with $85.8 million during the same quarter last year.
PANDORA forecast Q2 revenue to be in the $213 million to $218 million range, with a full-year revenue forecast to be in the range of $880 million to $900 million.