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Web-radio-service Pandora Media Inc. on Thursday said its loss widened in the latest quarter although advertising sales climbed 23% allowing the company to raise its revenue guidance for the year.

The losses on an adjusted per-share basis were less severe than expected by analysts surveyed by Thomson Reuters helping push shares of the company up after hours.

Ad sales, which make up the greatest share of total revenue, reached $220.3 million from $178.7 million a year earlier. The company's subscription and ticketing service units also posted growth.

"This was a really strong start to the year, and I see clear signs of momentum across our business," CEO Tim Westergren said in prepared remarks.

Shares rose 5.4% after hours as Pandora said its revenue for the year is now expected to range from $1.41 billion to $1.43 billion, up from its earlier call for $1.4 billion to $1.42 billion.

For the second quarter, revenue is expected to range from $345 million to $355 million, in line with the $350 million estimate from analysts surveyed by Thomson Reuters.

Over all, for the first quarter, Pandora widened its loss to $115.1 million, or 51 cents a share, from a loss of $48.3 million, or 23 cents a share, a year earlier. Excluding certain items, losses were 20 cents a share, versus 12 cents a year earlier.

Revenue rose 29% to $297.3 million.

Analysts polled by Thomson Reuters expected a per-share loss of 31 cents and revenue of $286 million.

Active listeners were 79.4 million at the end of the first quarter of 2016, up slightly from 79.2 million in the same period of the prior year.

Last month, the internet-radio giant said it was replacing its now former-CEO Brian McAndrews with Mr. Westergren, the charismatic founder of the company with a music background. While Mr. McAndrews has a resume that includes Microsoft, General Mills and Walt Disney Co.'s ABC, Mr. Westergren has composed films scores and toured with a soft-rock bank. The thinking was that Mr. Westergren's experience was better suited to striking crucial licensing deals with the music industry.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

April 28, 2016 17:45 ET (21:45 GMT)

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