By Katey Stapleton
Internet music sensation Pandora Media (P) has proven its fine-tuned worth with an excellent start to its 2013 fiscal year. With revenue growth of 58% in the past year, the online radio company has positioned itself for continued development and success in the coming months.
Singing a very happy tune, users multiplied at an alarming rate to 51.9 million, up 53% since 2012's first quarter. With such large strides being taken in such a short amount of time, it is no wonder that CEO Joe Kennedy is over the moon, stars and sun with P's reported earnings.
"This quarter Pandora averaged more than 50 million active users a month who generated more than 3.09 billion listening hours across Pandora's multiple platforms - desktop, auto, consumer electronics, and mobile devices. Consumers continue to embrace Pandora's unparalleled personalized radio experience at an extraordinary rate, propelling Pandora's market leadership to an all-time record share of 5.95% of total U.S. radio listening," Kennedy said in a statement released yesterday afternoon.
Even repetitive, frequent commercial interruptions and banners will not drive listeners away from the popular randomized stations. In turn, this has prompted advertisers to take notice and pay top dollar to be a part of Pandora's melodic force.
According to Kennedy, promoters want to be where their consumers are. As such, they are trying to get their messages across quickly and efficiently using P as a medium to reach millions of users every day. With 71.7% shares of the top 20 U.S. Internet radio services, who wouldn't want to advertise across the booming vibe host that is Pandora?
In accordance with the immense growth Pandora has experienced in the past year, management has increased guidance for the full year with revenue expected to fall between the range of $420 million to $427 million. For the upcoming quarter alone, sales are projected to reach between $99 million to $101 million.
With headphones secured tightly to the ears of millions of music enthusiasts, it appears that Pandora will continue to grip firm to the lobes of Internet radio listeners around the world for years to come.
Pandora closed today at $11.60, up 15.88 year-to-date.
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