James Delahunty
23 May 2012 19:17
Pandora has strong quarter, raises outlook.
The service benefited from growth in listeners since the start of the year. It reported on Wednesday that total revenue for the first quarter was $80.8 million, ahead of analysts anticipated revenue of $74.3 million.
It raised its full-year revenue outlook to $420-$427 million, up from $410-$420 million. "It was a good quarter and a very good start to the year," said BMO Capital Markets analyst Edward Williams.
The service is yet to turn a profit, and is in an increasingly competitive business.
"We are making excellent progress on all fronts - consumer adoption continues at an extraordinary pace," Pandora Chief Executive Joe Kennedy told Reuters.
Pandora is supported mainly by advertising, competing with traditional radio services such a ClearChannel, satellite radio provider Sirius XM and also with Internet streaming services like Spotify. It recommends different songs based on a users' playlists.