Pandora Media Inc (NYSE:P) reported that its net income and revenue for the fourth quarter and full year 2013 increased significantly, however it seemed that investors ignored it because its stock price fell after hours on Wednesday.
The shares of Pandora Media, Inc (NYSE:P) declined more than 9% to 32.28 per share after hours primarily due to its weak outlook for the first quarter and full year 2014.
Earnings and revenue outlook
The internet radio service provider anticipated that it will incur losses in the range of $0.14 to $0.16 per share for the first quarter, and to generate as much as $176 million revenue. For the year 2014, Pandora Media, Inc (NYSE:P) projected to earn between $0.13 to $0.17 per share, and to achieve a revenue of as much as $890 million.
The consensus estimates of Wall Street analysts for its earnings and revenue for the quarter and full year were higher. They estimated that the company will incur quarterly losses of $0.12 per share on $171.70 million and to achieve $0.19 earnings per share on $896.30 million for the year.
Financial results
During the fourth quarter last year, Pandora Media, Inc (NYSE:P) said its non-GAAP diluted earnings per share increased from $0.05 in the fourth quarter 2012 to $0.11. Its total revenue rose from $132.88 million to $220.78 million.
For the entire year 2013, the internet radio service provider said its earnings increased to $0.06 per share from $0.04 losses per share a year earlier. Pandora Media, Inc said its revenue climbed from $414.37 million ti $647.52 million.
According to Brian McAndrews, chairman, president, and CEO of Pandora Media, Inc (NYSE:P), the company’s revenue rose more than 50% year-over-year. He said, “We continued to improve monetization, which was reflected in record RPMs on all dimensions of our business, and drove our first non-GAAP profitable year as a public company.”
He added that Pandora Media, Inc (NYSE:P) reinvested into its business with notable successes. The company also saw improvement in products, innovation across multiple technologies, devices and automotive platforms.
Furthermore, McAndrews said the company continues its efforts in reinventing radio and make Pandora available to millions of listeners anytime, anywhere.
Listener metrics
Pandora Media, Inc (NYSE:P) said it has 73.4 million active listened by the end of January this year, uo by 12% from 65.6 million in the same month a year ago. Its radio listening share in the United States rose from 7.68% to 8.57%. According to the company, its listening hours last month increased 13% to 1.58 billion frpm 1.39 billion in the same period a year ago.
