Pandora’s quarterly earnings report was music to investors’ ears. The digital radio platform reported a better-than-expected first quarter report after the bell on Thursday, sending shares up 8 percent in after-hours trading.
Wall Street liked that the company showed a sizable increase in subscriber revenue, posting $104.7 million, a 63 percent increase from last year. Pandora has 5.63 million paid listeners, up 19 percent from the same timeframe in 2017.
By contrast, Apple Music says it has 40 million subscribers and Spotify has 75 million, so Pandora is a distant third in terms of paid users.
But the competition is already reflected in Pandora’s stock price. It closed Thursday at $5.75, which is up a buck for the past month. It’s also substantially beneath the $37 per share that the stock was trading at in 2014. Its market cap is currently $1.45 billion.
In addition to subscribers, Pandora makes money from its unpaid users via ads. The company had 72.3 million active listeners, bringing in $319.2 million in revenue. Analysts had expected $304.3 million.
Its adjusted loss per share was 27 cents, well above the negative 38 cents that Wall Street forecast.
“Pandora is exactly where we want to be: at the center of a growing market with huge potential,” said Roger Lynch, CEO of Pandora, in a statement.