Pandora Jams Out in Q4

Pandora Media, Inc. (NYSE: P) released its most recent quarterly results after markets closed Wednesday. The company said that it had a net loss of $0.21 per share on $395.3 million in revenue, compared with consensus estimates from Thomson Reuters that called for a net loss of $0.07 per share on $376.43 million in revenue. The fourth quarter from last year had a net loss of $0.13 per share and $392.6 million in revenue.

Revenues for the fourth quarter included $297.7 million in advertising revenue and $97.7 million in subscription revenue.

During the quarter, total listener hours were 5.03 billion, compared to 5.38 billion for the same period of the prior year. Also active listeners were 74.7 million.

The company did not issue any guidance in the report, but the consensus estimates are calling for a net loss of $0.26 per share on $322.87 million in revenue for the first quarter.

On the books, Pandora ended the quarter with $500.8 million in cash and investments, compared to $499.4 million at the end of the prior quarter.

Roger Lynch, CEO of Pandora, commented:

Digital audio is on the verge of massive growth – music consumption is increasing, podcasts are gaining popularity and voice-activated devices are quickly becoming mainstream. Just like video, audio is transitioning from a one-to-many broadcast experience to a one-to-one model with personalization at the core. Pandora’s scale, listener engagement and data position us well to capitalize on these trends. From launching on-demand for our ad-supported listeners to expanding multiple device partnerships in the last quarter alone, we’re building a strong foundation for audience growth and improved monetization. These efforts will enable us to strengthen business fundamentals and reinvigorate Pandora in 2018.

Shares of Pandora closed Wednesday down over 8% at $4.87, with a consensus analyst price target of $7.88 and a 52-week range of $4.09 to $13.36. Following the announcement, the stock was up about 8% at $5.25 in the after-hours session.

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