Pandora Media Inc. (NYSE: P) is scheduled to report fourth-quarter and full-year results after markets close Thursday. The streaming music company is expected to post earnings per share (EPS) of $0.07 and revenues of $331.83 million for the quarter and full-year EPS of $0.11 on revenues of $1.16 billion.
In the same periods last year, the company reported quarterly EPS of $0.18 on $268 million in revenues and full-year EPS of $0.20 on revenues of $906.62 million.
When Pandora reported third-quarter earnings last November, the company cut its fourth-quarter revenue forecast to a range of $325 million to $330 million, and that helped take the shares down. Another, perhaps bigger, problem was listener numbers, which were higher year over year, but down sequentially.
Since the beginning of the year, Pandora’s shares are down nearly 40%, and what investors worry about most are those active listener numbers. Advertisers pay for eyeballs (or in Pandora’s case, ears) and the more listeners, the more advertisers will pay. The converse is also true, and that is what led to a lowered revenue forecast.
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