Pandora Communications (NYSE: P ) announced fiscal 2012 earnings results Thursday, after market close. Cash burn at the Internet radio company increased by 38.5%. GAAP losses for the year more than doubled. Nonetheless, with revenues growing more strongly than expected, and Pandora predicting Q1 revenues will exceed analyst targets, yet again, the shares surged 21% in after-hours trading.
One factor that may be contributing to investor optimism is Pandora's announcement that the man who's led the company for the past nine years, captured a 70% share of the Internet radio market, built up an annual revenue stream of $683 million -- yet never managed to earn a profit -- is now leaving the company. In a press release following today's earnings, Pandora confirmed that company Chairman, CEO, and President Joseph Kennedy has decided to resign from his post(s) just as soon as a replacement can be found.
In the same statement announcing Kennedy's planned departure, Pandora confirmed that it has already startedlooking for such a replacement.