NEW YORK (TheStreet) -- It may have been the quarter Pandora (P) faced potential doom when Apple's (AAPL) iTunes Radio entered the arena, but from the looks of it, you wouldn't know it.
For the third-quarter ended October, the Internet radio provider recorded net income of 6 cents a share, in line with what analysts surveyed by Thomson Reuters had expected. Revenue of $181.6 million was up 50% over the year-ago quarter, beating consensus by $6.8 million. Of total revenue, advertising generated $144.3 million ($104.9 million of which stemmed from mobile), a 36% year-over-year increase, and subscriptions and other incidental sales pulled $37.2 million, up 156% from the year-ago quarter.
"Mobile advertising revenue surpassed the $100 million milestone during the quarter, which drove increased operating leverage," said CEO Brian McAndrews in a press release. "At the same time, Pandora continues to lead the market in mobile innovations, with a complete redesign for the iPad and the debut of the Android tablet app. We plan to continue to aggressively invest in the business as we seek to deliver the best personalized radio service for users."
Sales spending curbed profitability as marketing expenses increased 90% year on year, dwarfing 32.4% gains in content acquisition costs. The company reported an unadjusted net loss of $1.7 million, compared to a net profit of $2.05 million a year ago.
As for reach, the Oakland, Calif-based business held its own in market share over the quarter, with total U.S. share of 8.06%, compared to 6.61% in the third quarter of 2012. A total 70.9 million active users, 20% higher than a year ago, racked up 4.18 billion hours of listening, 17% more than last year.