3 Reasons Why Pandora Shares Jumped After Solid 4th Quarter Earnings Released May 2013


Pandora Shares Rise 18 Percent After 4th Quarter Earnings Released:

Pandora has been shaking things up in the music business ever since they became one of the largest content streamers in the U.S.  Pandora is a free music internet radio company that specializes in fine tuning user music preferences over time.  Users create radio stations such as “Miles Davis” or “Jay-Z” and automatically, those artists and music that is similar continues to play, for a small subscription fee of course.

Users who don’t opt to pay for a subscription are served ads and Pandora is able to monetize mobile effectively by creatively placing advertising throughout the listening experience.

3 Reasons Pandora Shares Jumped Over 15 Percent Today:

  1. Fiscal 2013 revenue of $427.1 million a 56 percent year-over-year increase
  2. Fourth quarter revenue of $125.1 million, a 54 percent year-over-year increase.
  3. Mobile revenue for the fourth quarter of $80.3, a 111 percent year-over-year increase.

Pandora is firing on all cylinders. Mobile growth is impressive and revenue is consistently beating estimates.  A strong mobile story is the best way to impress analysts and investors.  Pandora has just switched their mobile platform to only allow 40 hours of play per month without commercials that could bring in a significant amount of new revenue.  It’s time to take a look at the mobile space and use Pandora as a model for successful monetization.

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