Pandora Media CEO Joe Kennedy says he will step down as head of the streaming music company. (Justin Sullivan, Getty Images)
By Malathi Nayak

SAN FRANCISCO -- Pandora Media said on Thursday it plans to replace CEO Joseph Kennedy, and that it has started a search to fill the position.

The online streaming music service also forecast better-than-expected revenue for the first quarter of fiscal year 2014.

Pandora's shares rose 23 percent in after-hours trading. They closed at $11.73 on the New York Stock Exchange.

Kennedy, who was appointed to lead the company in July 2004, is expected to continue in his current role until the company's board names his successor, Pandora said.

The company said fourth quarter revenue rose 54 percent to $125.1 million. Analysts were expecting $122.8 million, according to Thomson Reuters I/B/E/S.

The Oakland, California-based company said that mobile revenue, an important metric, rose 111 percent to $80.3 million for the fourth quarter.

It reported a quarterly loss of 4 cents per share, compared to a loss of 3 cents per share in the same quarter a year ago.

Pandora said it expects revenue in the first quarter of $120 million to $125 million. This surpassed analysts' expectations of $ 119.5 million, according to Thomson Reuters I/B/E/S.

Photo: Justin Sullivan, Getty Images

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