Pandora Q4 Falls Short With $268M In Revenue

Pandora’s earnings report for the fourth quarter of 2014 disappointed Wall Street, with revenue of $268 million and diluted earnings per share of 18 cents (that’s non-GAAP).

That means the company fell a bit short of analyst expectations for EPS of 19 cents especially on revenue, where analysts had predicted $276.5 million.

Subscription revenue was $47.9 million (up 24 percent year-over-year), while ad revenue was $220.1 million (up 36 percent). The company’s earnings release also highlights its growth on mobile, which accounted for $209.5 million in revenue — 77 percent of the total.

As for usage, Pandora says it saw 5.2 billion total listener hours in Q4, up 15 percent from the same period in 2013. There were 81.5 million active listeners, up 7 percent.

In the earnings press release, President and CEO Brian McAndrews said:

We have spent the past two years building our monetization capabilities and infrastructure to a point where we are driving healthy gross margins and are cash flow positive. 2015 will be a year in which we optimize Pandora’s potential for long-term growth. We enter the year with energy and focus on what comes next –further migrating radio budgets from terrestrial to digital, defining the future of mobile marketing and advancing Pandora’s leading role in the future of the music industry.

For the full year of 2014, Pandora saw $906.6 million in non-GAAP revenue with diluted EPS of 20 cents.

As of 4:29 p.m. Eastern time, Pandora’s stock is down more than 20 percent in after-hours trading.