Pandora Is Now a Billion-Dollar Company

Streaming music service Pandora just hit a major milestone: The company surpassed $1 billion in revenue in the 12 months ending with June 2015. This is the first time Pandora has hit that threshold in 12 trailing months. The company now expects to generate between $1.175 billion and $1.185 billion for the full year of 2015.

The news came as part of Pandora’s Q2 1215 earnings results, which saw significant gains on a number of fronts: Revenue for the quarter came in at $285.6 million, up 30% from the same quarter in 2014. Advertising generated $230.9 million, which also represents a 30% growth year-over-year. Listening was up 5%, totaling 5.3 billion hours during the quarter.

The company generated net losses of $16 million compared to $11.7 million a year ago. Music licensing continues to represent a large chunk of Pandora’s costs: The company spent $130 million on content acquisition during the recent quarter, and Pandora’s CFO Mike Herring said during Pandora’s earnings call Thursday that it expects to pay out a total of $1.5 billion for content by the end of this month.

Asked about Apple Music, Pandora’s CEO Brian McAndrews said that the company hasn’t really seen any impact yet. He speculated that some Pandora users may experiment with Apple Music in the future but added: “We don’t expect any long-term meaningful impact.”

Correction, 3:40pm: A previous version of this post incorrectly identified Pandora’s net losses as earnings.

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