Pandora Media, the internet radio provider, exceeded the estimated profitability according to Thomas Reuters. The company announced in the quarterly report ended July 31 that its sales have increased 51 percent.
In the report, Pandora stated that its sales have increased to $101.3 Million, a 51 percent rise from the year-earlier quarter. Analysts at the Street had estimated 100.9 Million in a consensus conducted by Thomas Reuters.
The results were obvious in stock prices that rose 8 percent to above $11. The shares were trading at a little above $10 on Tuesday. Moreover, the company announced a break-even on the stock profit-loss ratio, which is down from the 2-cent profit it offered last year but definitely higher than the 3-cent loss experts had claimed.
Furthermore, the company also released an estimate of sales for this year. In light of the performance in the last two quarters, the company now expects a rise in annual sales results ranging from $425 to $432 Million. This is more than the previously expected figures of $420 million to $427 Million from experts. The median $428.5 is more than $424.2 Million.
Pandora CEO Joseph Kennedy said the results show “strong momentum.” “In particular, this quarter demonstrated that our mobile monetization strategies are working,” he said in the company’s earnings release.
The big boost to the internet-based radio station comes from the advent of tablet computers and internet-based television set-top boxes like Apple TV and Roku LT/HD. The subscriptions have spiked up as the demand of these devices has risen in the last one year.
Moreover, the global span of the service has also lured advertisers and marketers to take to Pandora for advertisements. The company competes with local radio stations and internet-based Sirius XM and Spotify.