While Pandora’s advertising business continues to grow, it’s not expanding quickly enough to offset the streaming radio service’s content costs and turn a profit.
Pandora booked $194.3 million in total revenue for the first quarter of 2014, a 69% increase to beat analysts’ estimates. However the company recorded a $28.9 million net loss, giving the streaming radio company another quarter in the red. In recent years Pandora has only turned a single-digit millions quarterly profit in the fourth quarter.
Pandora’s advertising revenue rose by 45% to $140.6 million, driven by a surging mobile ad business. Revenue from mobile advertising climbed by 59% to $103.1 million, accounting for 73% of ad revenue and 53% of the company’s overall revenue.
The full story is at Pandora’s Ad Revenue Climbs But Not Enough to Turn a Profit | Digital – Advertising Age.
