It's not just about profitability, valuation takes future cash flow into account. So, if the market thinks that Pandora's cash flow would increase without much

It's not just about profitability, valuation takes future cash flow into account. So, if the market thinks that Pandora's cash flow would increase without much risk, and they do have healthy revenue, they can have a successful IPO. Think about Tesla, which is much more in red but had a great IPO.