Online music service Pandora released its second quarter financial report on Thursday, the first such statement made after the company went public.
For the second quarter fiscal 2012, total revenue was $67 million, a 117% year over year increase, read Pandora's report at SEC.gov Advertising revenue was $58.3 million, a 118% year over year increase. Subscription and other revenue was $8.7 million, a 112% year over year increase.
Pandora has been criticized by some analysts as lacking a truly profitable business model over the long term, and with a net loss of $1.8 million in Q2 2011, this still remains to be disproved. However, the growth in revenue is certainly good news for investors, and an article in GigaOm quotes an analyst as saying that Pandora's web app is currently generating more ad revenue per 1000 hours than traditional radio is, with a tenth of the user base.”
“It’s our belief that over the long term we can reach similar levels in mobile,”added Pandora CEO Joseph Kennedy in the same article.
Kennedy also stressed that Pandora has tremendous room to grow”, with less than four percent of the radio market in the U. S., numbers which are backed up by the company's Q2 report.
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Total listener hours were approximately 1.8 billion for the second quarter fiscal 2012, an increase of 125% compared to approximately 0.8 billion for the second quarter fiscal 2011, read the report. Estimated share of total U.S. radio listening at the end of the second fiscal quarter was 3.6%, up from 1.8% a year prior.
Even so, says ReadWriteWeb, quoting an article by HollywodReporter.com, the traditional terrestrial stations that make up the vast majority of the U. S. radio market are overjoyed that radio industry revenue improved this year at all -- it hasn't in the past five years -- and the overall industry's 6 percent growth is miniscule compared to Pandora's 117 percent for this quarter alone.
James Lee Phillips is a Senior Writer & Research Analyst for IBG.com. With offices in Dallas, Las Vegas, and New York, & London, IBG is quickly becoming the leading expert in Internet Marketing, Local Search, SEO, Website Development and Reputation Management. More information can be found at www.ibg.com. Navisis-Financial believes that every client deserves a unique investment strategy. They can be trusted to manage your assets on a daily basis and respond rapidly to changes in the financial market.