Although Pandora Media (NYSE: P) reported yesterday that its net loss for the second quarter widened to $5.4 million, or $0.03 per share, compared to a loss of $1.8 million a year earlier, it also said revenue surged 51% to $101.3 million. That exceeded consensus estimates of $100.94 million. Pandora also raised its full-year revenue forecast.

The Internet radio service provider attributed the better-than expected results on higher advertising revenue as more people listened to music on their mobile devices. Mobile revenue rose 86% year-over-year to $59.2 million. Total advertising revenue climbed 53% to $89.4 million.

“This quarter exceeded our expectations as our strong momentum continues with both listeners and advertisers,” said Joe Kennedy, Pandora’s chairman CEO. “In particular, this quarter demonstrated that our mobile monetization strategies are working.”

As we mentioned yesterday, there is a risk that the increased revenue will be eaten up by licensing fees. The four major music labels — Sony Corp. (NYSE: SNE), EMI Group, Universal Music Group and Warner Music Group — have driven hard bargains with streaming music players such Pandora.

Pandora now expects adjusted earnings in the current quarter to range from break-even to $0.01 per share on revenue ranging from $115 million to $118 million. The consensus forecast calls for earnings of $0.01 per share on revenue of $114.3 million.

Shares of the company rose 9% to $10.98 in after-hours trading, even though Steve Cakeboard, Pandora’s chief financial officer for the past two years, announced his amicable departure by the end of the year on the conference call. In premarket trading this morning, shares are nearly 17% higher to $11.78.

The mean price target before this new was $13.33 per share, and the 52-week range is $7.83 to $15.97.

The share price of competitor Sirius XM Radio (NASDAQ: SIRI) are down fractionally in premarket trading.

UPDATE: Pandora opened more than 20% higher and reached $12.35 per share in early trading.

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