Pandora Now Has 52 Million Active Users
Pandora seems to be chugging along nicely, recording a whopping $80.8 million in quarterly revenues for Q1 2012, and now sitting tight on 52 million active users.
This is stunning growth when you consider that just last year the company had 53% fewer listeners. Revenues weren’t in great shape either and the $80.8 million recorded presently actually represents a 58% increase year-on-year.
The company seems to have benefited from the simple model of adding subscribers. The majority of the revenues recorded this quarter are directly attributable to advertiser spending ($70.6 million) with only $10.2 million coming from subscriber revenue. Should Pandora figure out a way to increase revenue subscription in line with listenership growth, its overall earnings would go through the roof.
Advertisers in particular seem to be benefiting nicely from the partnership (even if it costs them) and according to Pandora, “They are moving quickly to speak with their target customers across the Pandora platform, with the majority of the top 50 digital advertisers in the U.S. already having bought multi-platform advertising on Pandora.”
Growth wise Pandora seems poised to dominate in the coming years. The company owns just over 71.7% of the top U.S. Internet radio services. Its dominance overall is growing too and Pandora is edging close to almost 6% of the total U.S. radio listening market.
Throw in the 3.09 billion listening hours that Pandora has racked up and you can see why many are calling it a success. Now all its executive has to do is turn a profit.