Updated: Pandora Releases Financial Results, Shares Still Plummeting

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Pandora claims they really impacted “the everyday working band” in 2014. This is debateable. What isn’t debatable is the fact that investors are not happy with the company’s progress over the past year.

Updated February 9th 2:30 PM PST: Pandora’s shares have fallen even further. They’re currently at $14.82.

Pandora released fourth quarter and year-end financial results yesterday. Following this, shares plummeted from $18.39 to $15.01. As of 2 PM EST shares are at $15.31.

Revenue in the fourth quarter of 2014 was $268 million, up from $200.4 million in 2013. $220.1 million of this revenue was from advertising, and $47.9 million of the revenue was from subscriptions and other sources. Reuters reports that ad revenue was lower than expected, and growth is slowing.

Revenue for the entire year was $920.8 million, up from $637.9 million in 2013.

Pandora had 81.5 million active listeners in the fourth quarter, up from 76.2 million last year. Listener hours in the fourth quarter were 5.2 billion, up from 4.5 billion last year.  Analysts reportedly expected 79 billion active listeners and 5.4 billion listener hours.

Listener hours for the year were 20 billion, up from 16.7 billion the previous year.

Pandora expects to bring in $220 – $225 million in the first quarter of 2015, which falls short of expectations.

 

Nina Ulloa covers breaking news, tech, and more. Follow her on Twitter: @nine_u

Graph: Yahoo Finance

10 Responses

  1. FarePlay

    And then, Pandora will have to shell out all that money in the pre 72 non-payment debacle and the new lobbyists they hired in DC. I wonder if the guys over at Goldman Sachs have closed that half a BILLION $ loan for Spotify yet.

    Then there’s the report from the U.S. Copyright Office that came out yesterday.

    Something tells me things are about to change. JW. You can quote me on that.

    • Name2

      Labels not paying artists? That’s forever.

      You can quote me on that.

  2. Remi Swierczek

    Dear Mr. Westergren,
    Let’s be fair to yourself, your shareholders, musicians and music industry!
    You can provide same pleasure to your audience as today with no subscriptions or advertising. Just convert your venture to discovery based music store.

    All you need a united effort of Radio, labels and music and lyric ID services to lock the music in virtual walls.
    Google drunk with ads might be the only temporary opponent of new business model.

    $10B Pandora, $1B Shazam or $5B Spotify would pop like mushrooms after the rain!

    Many IPOs, stock reevaluations and $100B music industry by 2020.

  3. Name2

    So, listener hours 2014 over 2013: 19.6 % increase
    Revenue 2014 over 2013: 44.3% increase

    But, you know, Wall Street isn’t happy, so…

    • FarePlay

      Name2. You seem to Know the Pandora numbers. Can you tell us how much stock Tim Westergren is still holding?

      • Name2

        I’m only filling in spreadsheets with numbers provided by DMN authors in their articles, including this one.

        I don’t pretend to have magic inside knowledge.

        • FarePlay

          Name2. Based on your answer, of course you know. It has been talked about quite a bit in DMN. If my memory serves me well, I believe Tim has sold over 90% of his shares in Pandora.

  4. jw

    >> Pandora claims they really impacted “the everyday working band” in 2014. This is debateable. (sic)

    I would love to hear you debate that. lol.

    Pandora’s stock is only 10 cents below where it was on Jan 15. So this isn’t really a huge drop… it’s barely a 30 day low. The real story is that the stock has been steadily sliding for the last year. Which will probably continue for the foreseeable future.

    What’s interesting to me is that Pandora doesn’t really have much competition. Atlanta radio stations are switching to classic hip hop & classic country… that’s terrible news for the recorded music industry. Who else are you going to invest in? Not SiriusXM. Not terrestrial radio. Spotify radio, iTunes radio, etc. all suck. Songza will never go mainstream since it’s owned by Google but not a priority. Pandora is the only service poised for longterm success. And either the stock price will eventually reflect this, or radio as a delivery mechanism is in trouble.

    But this day to day, people trying to flip the stock for short term profits, is just a side show, not really worth reporting on. Wall Street doesn’t know shit, anyhow. Do you remember 2000? Do you remember 2008? Or alllllll of the bearish reporting on FB lolol which dipped from 38 to 18 & is now at 75. Most of the real money is being made by cheating the system with computers, anyhow, not by identifying great companies for long positions. The money being made off of the trades, & off the psychology of the trader, is what’s causing these $2 & $3 deviations… it’s not really reflective of the health of the company. I mean how many great, stable companies have missed a quarterly growth expectation? Most if not all of them, I’d wager.

  5. FarePlay

    It has been estimated that pre 1972 music represents 15% of their streams. Had they been paying on those streams their financials would be even more underwater and the downward trending of their stock would be worse.

    This does not bode well for their future and if the listening public continues to migrate away from paid downloads and physical product we may find ourselves in a very bad situation if these services implode from insurmountable debt.

    • Name2

      Kinda strange that all kinds of companies can make a viable business out of streaming Hollywood movie and TV content, but no one can make music work.

      /Things that make you go “Hmmmmmm”.