Pandora Media Inc.’s (P) fiscal fourth-quarter loss widened as a rise in the Internet-radio provider’s expenses outpaced its revenue growth.
However, shares climbed 21% to $14.15 after hours as the results beat the company’s expectations. It also provided revenue guidance for full year and current quarter mostly above analyst expectations.
For the full year, Pandora sees revenue of $600 million to $620 million, while analysts polled by Thomson Reuters forecast $600 million. Pandora projected adjusted bottom-line results would range from a loss of five cents a share to a profit of five cents a share, while analysts had forecast a loss of two cents a share.
For the first quarter, Pandora sees revenue of $120 million to $125 million, compared with the $120 million estimate from analysts. The company projected an adjusted loss for the quarter of 13 cents to 10 cents a share, while analysts predicted a loss of 10 cents a share.
Pandora’s robust listener growth has brought with it mounting royalty costs for the songs it plays. The company, which went public in 2011, has also faced a lag in making money from mobile phones. Pandora, like other Internet companies, has experienced growth in use of its service on mobile devices, but hasn’t yet been able to make as much ad revenue as on traditional desktop computers.
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