Pandora Revenue Rises -- But Not Enough For Wall Street
February 5, 2015 at 3:24 PM (PT)
The power of perception couldn't be better illustrated than watching WALL STREET's reaction to PANDORA's just announced Q4 report. Q4 '14 total revenue increased 33% to $268 million on a non-GAAP basis. Advertising revenue rose 36% to $220.1 million. Subscription and other revenue grew 24% to $47.9 million.
However, since the Q4 revenue was $5-10 million less than company expectations and its initial Q1 2015 revenue guidance of $244 million was revised lower to $220-$225 million, PANDORA plummeted in the after-hours session, falling around 23%.
Other factoids from PANDORA's report:
* Q4 '14 total mobile revenue grew 43% to $209.5 million a GAAP and non-GAAP basis; full year 2014 total GAAP and non-GAAP mobile revenue was $712.0 million and $699.1 million, growing 58% and 52%, now 77% of total GAAP and non-GAAP revenue
* Q4 2014 local advertising revenue was $49.9 million, growing 90% year-over-year
* Full year 2014 local advertising revenue was $152.9 million, growing 155% year-over-year
* Mobile monetization reached record highs across all dimensions of Pandora’s business
* Year-end 2014 active listeners were a record 81.5 million, growing 7% year-over-year
* Full year 2014 total listener hours were 20.03 billion, growing 20% year-over-year
On a full year basis, PANDORA revenue rose 44% to $920.8 million, primarily due to a 40% increase in ad revenue. Net income, however, was actually a $30.4 million net loss that resulted in a 15-cent per-share net loss for the year. This marks a slight improvement over the 23-cent per-share net loss in 2013.
“We end 2014 in a very good position, with stronger relationships across the music community, record monetization metrics and highly engaged users,” PANDORA CEO BRIAN MCANDREWS said in a statement. “We’re looking forward to an exciting and productive 2015. 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."