The News of Higher Revenues and More Investors,, Prompting Trade of Pandora by 18.6%

The news of higher revenues and more listeners encouraged investors, prompting a surge in after-hours trade of Pandora by 18.6 percent to $13.92.

Paul Ausick at 24/7 Wall Street said the latest earnings report was "not substantially different from the company's third quarter results. The big difference is that expectations have been reset."

Kennedy said the company was benefiting from more revenues from its mobile service.

"We closed the year with a record eight per cent share of total US radio listening and record mobile monetisation that cemented our leadership in mobile advertising," he said.

Kennedy said Pandora had completed its technology integration with radio ad buying platforms and has been hiring "top talent in local radio markets" to increase its share of the $US15 billion radio ad market.

"We are now effectively the largest radio station in almost every major market and begin fiscal year 2014 with extraordinary momentum," he added.

Pandora went public in 2011 at $US16 a share, but has been dogged by profitability concerns.

The company is urging the US Congress to pass an overhaul of a law governing music royalties, claiming it pays a higher percentage of its revenues for song rights than its satellite radio rival.

Pandora said revenues from its mobile platform grew 111 per cent in the fourth quarter to $US80.3 million. Mobile listener hour growth was up 70 per cent year-over-year and total listener hours were up 53 per cent.