Shares of Pandora Media rose 25 percent on Friday, after the media streaming company reported a smaller-than-expected quarterly loss the previous day.
The increase added about $370 million to its market capitalization, bringing the stock to about $7.24 per share.
Despite intensifying competition from larger rivals, Pandora benefited from higher subscription revenue and smaller declines in its advertising business than feared.
The company said total subscription and other revenue surged 61.3 percent to $104.7 million, slightly above analysts' estimate of $104.6 million, according to Thomson Reuters I/B/E/S.
Pandora's advertising revenue fell 3.9 percent to $214.6 million, but topped analysts' estimate of $198.7 million.
Those newer services have plucked away many former Pandora listeners, but the Oakland company has started courting them to come back with new offerings such as its "Premium Access" feature, which lets users try out its ad-free, on-demand service after watching a video ad.