US-based personalised radio service Pandora announced its latest financial results yesterday, as well as more figures on how its mobile usage – and the revenues coming from it – is growing fast.
Pandora’s revenues were $120m in Q3, up 60% year-on-year, with the company posting a net profit of $2.1m for the quarter. It also revealed that it had 62.4m active users by the end of November, and that mobile and other connected devices now account for 77% of its total listening hours.
Pandora is also doing a better job making money from this usage: Pandora’s mobile revenues jumped 112% year-on-year to $73.9m. The launch of version 4.0 of its iOS and Android apps, which includes improved sponsorship opportunities for advertisers, appears to be paying off.
Worthy of note: those ‘other connected devices’ include cars, with Pandora saying that 1m people are listening to its service through its integration deals with car-makers.
However, despite the growth and net profit, Pandora’s share price plunged 19% in the hours following its results announcement. Why? Because the company predicted slowing growth in the next quarter, and a return to net losses.
“Many of our advertisers have recently become more cautious about their near-term spending, including their plans for January as macroeconomic concerns, including the fiscal cliff, have increased,” CEO Joe Kennedy told analysts.