Pandora reported a 62 percent increase year-over-year in active users for its fiscal fourth-quarter, which ended Jan. 31, along with a 74 percent increase in advertising revenue and a 99 percent rise in listening hours. However, those gains were accompanied by increases in royalty payments the online radio provider had to pay to content owners, and its overall performance fell short of analyst expectations. The stock priced dropped by some 24 percent after Pandora released the figures. The stock downturn reflects investor fears that Pandora is not just experiencing new company growing pains, but that its model may be inherently flawed.
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Pandora's Popularity - Too Much of a Good Thing?
Posted by: Erika Morphy March 8, 2012 10:31 AMPandora reported a 62 percent increase year-over-year in active users for its fiscal fourth-quarter, which ended Jan. 31, along with a 74 percent increase in advertising revenue and a 99 percent rise in listening hours. However, those gains were accompanied by increases in royalty payments the online radio provider had to pay to content owners, and its overall performance fell short of analyst expectations. The stock priced dropped by some 24 percent after Pandora released the figures. The stock downturn reflects investor fears that Pandora is not just experiencing new company growing pains, but that its model may be inherently flawed.