Pandora Falls Over 20% On Disappointing Q4 And 2015 Outlook
Pandora Media Inc (NYSE: P) announced financial results Thursday for the fourth quarter ended December 31, 2014.
Total revenue was $268.0 million, a 33 percent year-over-year increase on a non-GAAP basis, however, it was below expectations of $276.53 million.
Advertising revenue was $220.1 million, a 36 percent year-over-year increase. Subscription and other revenue was $47.9 million, a 24 percent year-over-year increase on a non-GAAP basis.
Non-GAAP diluted EPS was $0.18, below expectations of $0.19 and excluded $26.9 million in expense from stock-based compensation and $0.2 million in amortization of intangible assets. The GAAP basic and diluted EPS was $0.06.
Adjusted EBITDA was $43.8 million, a 68 percent year-over-year increase. Adjusted EBITDA excludes $26.9 million in expense from stock-based compensation, $4.2 million of depreciation and amortization expense, $0.4 million of provision for income taxes and $0.1 million of other income.
Active listeners were 81.5 million at the end of the fourth quarter of 2014, an increase of 7 percent from 76.2 million from the same period last year.
Revenue for the first quarter of 2015 is expected to be in the range of $220 million to $225 million, below estimates of $243.58 million.
Adjusted EBITDA for the first quarter of 2015 is expected to be a loss in the range of $35 million and $30 million. Adjusted EBITDA excludes forecasted stock-based compensation expense of approximately $25 million and forecasted depreciation and amortization expense of approximately $5 million and assumes minimal provision for income taxes given a net loss position.
For the full year of 2015, revenue is expected to be in the range of $1.15 billion to $1.17 billion, below expectations of $1.21 billion. Adjusted EBITDA is expected to be an income in the range of $70 million to $80 million.
Pandora Media Inc traded at $14.13 in the after hours session, down 23.25 percent.
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