Shares of Pandora Media Inc. (NYSE: P) rallied over 15% on Friday after the Internet radio company late last evening reported lower-than-expected fiscal fourth-quarter loss and provided upbeat outlook on the current quarter, thanks to its growing traction. The Company said that it commands nearly 8% of total radio listening.
For the fiscal fourth quarter, Pandora Media reported loss of 4 cents a share, excluding onetime items while analystsâ€™ consensus estimate was of a loss of 5 cents a share.
Revenue during the period climbed to $125.1 million from $81.3 million, in the year earlier quarter and beating analystsâ€™ consensus forecast of $122.8 million.
While revenue from advertising jumped 51% in the recently concluded quarter to $109 million, revenue from subscriptions and other sources leaped 74% to $16.1 million.
In the current quarter, Pandora is expecting revenue to be in the range of $120 million to $125 million, which beat analystsâ€™ consensus forecast of $118.6 million. The Company said that adjusted loss are expected to come in the range of 10 cents to 13 cents a share which is matching with analystsâ€™ forecast for loss of 10 cents a share.
Meanwhile, Companyâ€™s Chairman, President and Chief Executive, Joseph Kennedy, announced that he will be stepping down from the position. The Company is on the lookout for his successor and until a replacement is found, Kennedy will continue to remain at the helm of affairs.
â€śAs part of our board discussions of the road that lies ahead, I reached the conclusion and advised the board that the time is right to begin a process to identify my successor,â€ť Kennedy said in a statement.
Kennedy who took over the reins of the Company in 2004, has been instrumental figure in transforming a music technology company, which was co-founded by chief strategy officer Tim Westergren, into an Internet radio company in 2005.
The stock, which hit its all-time-low of $7.36 in mid-November 2012, has rebounded more than 85% since then but still remains way below its all-time-high of $19.02 hit July 2011. soon after the company went public.
By afternoon trade, shares were gaining nearly 18% to $13.86.