The numbers on Pandora’s performance during the first quarter of this year are out. And in light of these numbers, the company has been able to perform far better than what Wall Street gurus had been predicting. During Q1, Pandora’s revenue rose by 55 percent, reaching $126 million.
Pandora’s free internet radio service has grown wildly popular in the last year or so. Meanwhile, the number of subscribers who pay for ads-free version of the service has also soared, having exceeded 2.5 million during the first quarter.
It is precisely this growing number of paid subscribers that is contributing significantly to the company’s earnings. The company may not be able to take home a lot of profit, something which Pandora already predicted since it had to spend a substantial sum in one-time costs. Despite that, the company’s overall earnings have beat the predictions of many.
According to the CEO of the company, “I don’t think it pays to focus on this competitor or that competitor. What we can control is our continued development of what we believe is the best personalized radio service in the world.”
Due to the encouraging performance statistics from the first quarter, the company’s shares jumped up by 8.5 percent. Of the total $126 million that Pandora made during the first quarter, $83.9 million was generated through the mobile devices. If the company continues the current growth, it hopes to make a cool $615 to $635 million over the course of the entire year.
Courtesy: Business Insider