Pandora Profit Rises, But Shares Tank On Weak Outlook

(RTTNews) - Internet radio service provider Pandora Media Inc. (P), Wednesday reported an increase in profit for the calendar fourth quarter, driven mainly by a surge in revenues. However, shares of the company plunged ten percent in extended-trade after providing a weak outlook for the first quarter and full year 2014.

Pandora reported results for both calendar fourth quarter 2013 and for the November-and-December "stub period," as the company changed its fiscal year reporting to match the calendar year. Earlier, Pandora's fiscal year ended on January 31.

Pandora's revenues for the calendar fourth quarter soared 52 percent to $200.4 million from $131.5 million a year ago. Adjusted revenue increased to $200.8 million from $132.9 million last year. Nineteen analysts polled by Thomson Reuters had a consensus revenue estimate of $201.0 million for the quarter.

Advertising revenues, which forms a major part of revenues, soared 39 percent to $162.0 million, while subscription revenues soared 132 percent to $38.8 million.

Calendar fourth-quarter total listener hours rose 16 percent to 4.54 billion.

Total operating expenses rose to $49.2 million from $84.9 million last year.

Oakland, California-based Pandora's calendar fourth-quarter profit rose to $9.0 million or $0.04 per share from $1.6 million or $0.01 per share last year.

Excluding items, adjusted net income for the calendar quarter improved to $23.0 million or $0.11 per share from $9.7 million or $0.05 per share a year ago. Analysts expected earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

For the two-month November-December 2013 "stub period", Pandora posted a profit of $11.1 million or $0.05 per share, compared to a loss of $871 thousand or $0.01 per share last year. Total revenues grew to $137.0 million from $87.4 million.

Looking forward to the first quarter, Pandora expects adjusted loss of $0.16 to $0.14 per share and adjusted revenues of $170 million to $176 million. Analysts currently expect a loss of $0.12 per share on revenue of $171.70 million for the first quarter.

For the fiscal year 2014, the company expects adjusted earnings between $0.13 and $0.17 per share and adjusted revenues of $870 million to $890 million. Analysts currently expect earnings of $0.19 per share on revenues of $896.30 million for the fiscal year 2014.

P closed Wednesday's trading at $35.83, up $0.03 or 0.08%, on the NYSE. The stock, however plunged $3.58 or 9.99%, in after-hours trade.