Pandora Q3 Earnings In line, Soft Listener Growth a Concern

The year-over-year increase was on account of higher advertising revenues (81% of revenues), which increased 44% from the year-ago quarter to $194.3 million. Subscription service and other revenues (19% of revenues) improved almost 32% year over year to $45.3 million.  Active users increased 5.2% year over year from 72.7 million to 76.5 million in the third quarter of 2014. Total listener hours grew 25% on a year-over-year basis to 4.99 billion from 3.99 billion in the year-ago period.  Pandora’s share of the total U.S. radio listening market increased from 7.77% a year ago to 9.06% at the end of September.  Total revenue per thousand listener hours reached $48 in the third quarter, up 12% from $42.98 in the year-ago quarter.