Updated at: 05/23/2013 4:36 PM
(AP) OAKLAND, Calif. - Internet radio company Pandora Media Inc. reported higher-than-expected revenue in the latest quarter, with losses in line with analysts’ forecasts, as the number of subscribers who pay for ad-free listening more than doubled to exceed 2.5 million.
The company predicted that it may break even in the current quarter after adjusting for one-time costs. Its stock jumped in after-hours trading.
The net loss in the three months ending April 30 grew to $28.6 million, or 16 cents per share, from a loss of $20.2 million, or 12 cents per share, a year ago.
Excluding items such as stock-based compensation costs, the loss came to 10 cents per share, matching the forecast of analysts polled by FactSet.
Revenue rose 55 percent to $126 million, above the $124 million that analysts were looking for.
Pandora shares jumped nearly 9 percent to $18.70 after the results came out, their highest price since July 2011, a month after it debuted on public stock markets at $16.
Total listener hours grew 35 percent to 4.18 billion in the quarter, and revenue from mobile devices nearly doubled to $83.9 million, outstripping the growth in mobile listening hours, which rose 47 percent.
Revenue per thousand listener hours on mobile devices grew to $25.31 in the quarter, up from $18.86 a year ago. Total revenue per thousand listener hours including computers hit $30.01, up from $26.09 a year ago. Analysts focus on the figure, known as RPM, because song royalty costs _ Pandora’s biggest expense _ are around $20. Investors look for the company to raise revenue above the royalty cost figure as a means of turning to profitability.
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