Pandora Reports Fourth Quarter Results
Steaming music company Pandora released some interesting numbers today and apparently the street is eating it up with the stock moving up as much as 21% in after hours trading.
Pandora announced 4Q13 total revenue of $125.1 million, a 54% year-over-year increase — advertising revenue of $109.0 million, a 51% year-over-year increase – subscription and other revenue of $16.1 million, a 74% year-over-year increase.
The bulk of the company’s 4Q13 revenue came from mobile which totaled $80.3 million and grew 111% year over year outpacing the mobile time spent listening growth of 70%.
“We continue to monetize mobile at record levels and exceeded our expectations for the quarter,” stated Joe Kennedy, Chairman & CEO of Pandora. “We closed the year with a record 8% share of total U.S. radio listening and record mobile monetization that cemented our leadership in mobile advertising.”
Fiscal year 2013, total revenue was $427.1 million, a 56% year-over-year increase. Advertising revenue was $375.2 million, a 56% year-over-year increase. Subscription and other revenue was $51.9 million, a 51% year-over-year increase.
While revenue seems to growing at around 55% for Pandora, it should be noted that total listener hours grew 70% to 14.01 billion. That kind of disproportionate growth can’t be good for the company’s bottom line long-term. The one thing that may help turn the tide is the company’s recently completed move to integrate radio ad buying platforms into its music streaming technology.