Number of Pandora's active users in the U.S. 2013-2024

In the second quarter of 2024, Pandora had over 45 million monthly active users in the United States. The online radio platform has been suffering gradual user losses each quarter for some time, and has lost more than ten million U.S. users in the last two years. 

Pandora business model

Pandora Internet Radio is a part of the Music Genome Project that provides a music streaming service as well as music recommendations. The Music Genome Project uses 450 attributes to describe a song and an algorithm that organizes a wide range of music. Currently, Pandora is only available to users in the United States, Australia, and New Zealand.

Since its launch in January 2000, Pandora Internet Radio has vastly increased its number of active users. As of December 31, 2016, Pandora boasted 81 million active users. In comparison, Spotify hit the 100 million user mark in June 2016, although this streaming service is also available in most of Europe and South America, parts of Australasia, and various other countries in the world.

Pandora's financial results

In recent years, as Pandora has become more successful, the company’s revenue has reflected its broadening market. In the financial year 2022, Pandora’s revenue totaled 2.09 billion U.S. dollars, a figure which has risen significantly compared to just two years prior. Pandora currently obtains most of its revenue through advertisement, subscriptions, and directing users to purchase music through Apple and Amazon. In 2022, the company's advertising revenue exceeded 1.5 billion U.S. dollars.