Continuing to focus on growing its user base, Pandora's losses widened in the first quarter ending March 31, posting a net loss of $48.3 million, or 23 cents per diluted share, a 67 percent increase from the $28.9 million it lost in the corresponding period last year. However, the digital radio service's revenue continues to grow, bringing in $230.8 million, an 18.8 percent increase over the $194.3 million generated in the first quarter of 2014.
Advertising revenue growth remains strong, totaling $178.7 million during the quarter, an increase of 27.1 percent. Subscription revenue declined 3.1 percent, to $52 million.
Listener hours grew over Q1 by 11 percent, 5.3 billion in total, while active listeners also grew 5.6 percent, to 79.2 million, versus 75.3 million in the corresponding period last year.
"We've been actively investing in every part of our business -- from the music we play, to the ad technology and music-maker products we offer. This quarter's results are a reflection of those investments paying off," Pandora chairman, president and CEO Brian McAndrews said in a statement.
Looking forward, the company provided financial guidance, projecting revenue for the second quarter to reach roughly $280-285 million, with full-year revenue projected to hit $1.16-1.18 billion.
Adjusted losses before income, taxes, depreciation and amortization in Q1 were $20.8 million, down from the $22.4 million in negative EBITDA in Q1 2014.
The company holds $221 million in cash and $188.5 million in accounts receivable. Shareholder equity totaled $562.7 million. The company's share price closed at $17.71, right before its financial results were released, a gain of $0.20 over the previous day.