In its latest earnings statement for the period ended March 31, 2016, Pandora Media Inc. (NYSE:P) reported revenue growth in all categories, but a net loss of $57.4 million, compared to $20.9 million for the same period last year.

Other highlights from the earnings statement include:

• Total consolidated revenue for Q1 2016 was $297.3 million, a 29 percent increase, year-over-year
• Q1 2016 advertising revenue was $220.3 million, a 23 percent increase, year-over-year.
• Q1 2016 local advertising revenue was $61.3 million, a 42 percent increase, year-over-year.
• Q1 2016 ticketed service revenue, stemming from Pandora’s 2015 purchase of Ticketfly, was $22.3 million, a 30 percent increase, year-over-year.
• Subscription and other revenue was $54.7 million, a 5 percent increase, year-over-year.

Tim Westergren, Pandora CEO and founder, who replaced Brian McAndrews as CEO earlier this year, commented on Pandora’s first quarter.

“This was a really strong start to the year, and I see clear signs of momentum across our business. Our team is rapidly bringing Pandora’s audacious strategy to life, fundamentally changing how listeners discover and enjoy music while helping artists build sustainable careers,” Westergren said.

Listener metrics also saw growth this quarter with total listener hours growing 4 percent to 5.52 billion, compared to 5.30 billion, year-over-year. Active listeners totaled 79.4 million, an increase of 0.2 million from the first quarter of 2015.

How will Pandora reverse the huge losses? Tech Times reports that Pandora, an Internet radio station, is working on a new, tiered, on demand streaming subscription service that is more like Spotify and Apple Music than Pandora’s current service.

The current offering has both free and paid tiers, but subscription and other revenue only represent 18.4 percent of Pandora’s total income. Most of Pandora’s active listeners use the free service, which is supported by advertising revenue.

According to Variety, the new, subscription, on demand streaming music services will help the company reverse its losses. The new services, which are being fast-tracked, should be available by year’s end.

“There is a spectrum of pricings and offerings that we would like to bring to the market,” said CFO Mike Herring.

How? Pandora didn’t give specifics, but it revealed that it will be re-inventing the on demand experience.

Insider Take:

Westergren rejoined Pandora at the tail end of the first quarter, so the management change has not yet impacted Pandora’s bottom line. We expect to see that in the second quarter of 2016. One interesting note about the first quarter earnings report is that Pandora did not mention anything about a possible sale – or a buyer – for the Internet radio station which was big news earlier this year.

Whether the company is still up for sale is anyone’s guess, but as long as the company is around, it needs to reverse those massive losses to make it attractive to potential buyers or to help it become profitable for a sustainable future. Regardless of its path, we’re certain Westergren will play a key role in turning Pandora around.

~ Dana E. Neuts, Senior Staff Writer, Subscription Insider