Streaming music provider Pandora posted a 117 percent increase in revenue for a record $67 million after its first quarter as a publicly traded company, Pandora Media Inc. reported Thursday.
Pandora’s popular online radio service groups music into customized radio stations based on feedback from listeners. The company’s IPO in June opened with strong results that slowly dwindled as many questioned its ability to turn a profit.
The company’s overall boost in revenue, which beat the average analyst estimate of $61.1 million for the quarter, is due to strong advertising sales from its free ad-supported radio service. Its ad revenue increased 118 percent to $58.3 million, while subscription and other revenue rose $8.7 million.
Pandora saw the total number of hours people spend using the service increased to 1.8 billion (125 percent) compared to 800 million during the same quarter last year. The company also revealed that it had 37 million active users in July 2011.
Pandora faces competition from a growing number of streaming radio services, such as Spotify, Turntable.fm, and CBS-owned Last.fm as well as music download storefronts from Apple, Google and Amazon.