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Shares of Pandora Media fell during after-hours trading Wednesday after the Internet-radio company released disappointing guidance.
Pandora reported that it expects 2014 revenue between $870 million and $890 million and adjusted net income between 13 cents per share and 17 cents per share. That’s off Wall Street’s expectation of 19 cents per share.
That sent the stock, which closed up less than 1 percent to $35.83, down more than 10 percent during after-hours trading.
But that’s where the bad news ends. The company also reported fourth quarter earnings, excluding some items, of 11 cents per share on revenue of $200.4 million, which was up 50 percent from the same period last year.
Total listener hours grew 16 percent to 4.54 billion for the fourth quarter.
“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,” said CEO Brian McAndrews.
He added that the company remains focused on reinventing radio.
“To fully capture the substantial market opportunity ahead of us, we will continue to aggressively invest in 2014 in sustained audience and engagement growth as well as activities that further accelerate monetization,” he said.
Pandora also reported annual adjusted net income of 6 cents per share on revenue of $637.9 million.
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