Pandora Media Inc (P.N) reported better-than expected results on higher advertising revenue as more people listened to music on their mobile devices, and the company raised its full-year revenue outlook.
Shares of the company rose 9 percent in after-hours trading.
Chief Executive Joe Kennedy said Pandora's advances in mobile was a bright spot in the quarter. Advertisers are spending more on Web and mobile platforms, he said in an interview with Reuters.
Pandora is also grabbing more market share: listener hours are up 80 percent year over year, and its share of people listening to radio in the U.S. increased to 6 percent from 3.5 percent in the same period a year ago. Its Internet radio share has increased to 72 percent.
Pandora competes against Clear Channel, Sirius XM Radio (SIRI.O) and Spotify.
Additionally, during the earnings conference call with analysts, Chief Financial Officer Steve Cakebread said he will be leaving the company later this year, and that he has no disputes with Pandora. The company hired executive search firm Heidrick & Struggles to help find Cakebread's replacement.
Shares of the online streaming music service rose to $10.98 in extended trade, after closing at $10.08 on Wednesday.
Pandora said its fiscal second-quarter revenue jumped 51 percent to $101.3 million, beating analysts' expectations of $100.94 million, according to Thomson Reuters I/B/E/S.
On a Non-GAAP basis, the company broke even, besting analysts' expectations of a loss of 3 cents per share.
The Oakland, California company, which is more than 10 years old, is being carefully watched as a new model for radio listening as more people use the Internet to stream music to their cars, home stereos and mobile devices.
Pandora is dipping into its coffers to aggressively build out a local sales force and its mobile applications since it largely depends on advertising revenue.
Total advertising revenue rose 53 percent to $89.4 million. Mobile revenue climbed 86 percent year-over-year to $59.2 million.
"I loved the user metrics given all the hullabaloo of all the competitors," said Laura Martin, an analyst with Needham & Co.
"The mobile revenue is a big deal," she said.
Pandora raised its full-year revenue forecast to a range of $425 million to $432 million from $420 million to $427 million.
(Reporting by Jennifer Saba; Editing by Gary Hill, Bernard Orr)