Pandora Misses; Revenue Up 71 Percent To $81.3M But Swings To A Loss

Internet radio giant Pandora Media just reported fourth quarter results. The company posted revenue of $81.3 million, which was up 71 percent year-over-year. Non-GAAP net loss per share was $0.03. Analysts expected a loss of $0.02 a share, with revenue coming in at $83 million.

Advertising revenue was $72.1 million, a 74 percent year-over-year increase. Subscription and other revenue was $9.2 million, a 51 percent year-over-year increase. For the fiscal year 2012, total revenue was $274.3 million, a 99 percent year-over-year increase. Total advertising revenue was $240 million, a 101 percent year-over-year increase. Total subscription and other revenue was $34.3 million, an 87 percent year-over-year increase.

Pandora says total listener hours for the quarter were 2.7 billion and grew 99 percent year-over-year. Fiscal 2012 total listener hours were 8.2 billion, up 109 percent year-over-year. Active users reached a record 47 million in the quarter, up 62 percent year-over-year.

For the first quarter, revenue is expected to be in the range of $72-75 million. Non-GAAP net loss per share is expected to be between ($0.18) and ($0.21). Non-GAAP net loss per share excludes stock-based compensation expense, assumes minimal tax expense given our net operating loss position, and 164 million weighted average shares outstanding for the first quarter fiscal 2013.

“The fourth quarter was a strong finish to fiscal 2012, which was highlighted by record revenue, radio market share, listening hours and active users,” said Joe Kennedy, Chairman & CEO of Pandora in a release. “Reflecting on our first fiscal year as a public company, we have many accomplishments to be proud of and much to look forward to in the year ahead. Pandora continues to rapidly disrupt the radio industry and has only just begun to realize the potential of our $37 billion U.S. market opportunity.”

Although competitors like Spotify and Echo Nest are entering the market, Pandora doesn’t seem to be too worried. As co-founder Tim Westergren told Fast Company recently, Pandora has 125 million registered users and the average user listens to radio service for more than 18 hours a month.

In December, Pandora announced that they would be launching a series of free, live concerts for some of their listeners.