Published December 04, 2012
Overshadowing a third-quarter earnings beat, Pandora Media (P) warned late Tuesday it anticipates suffering a deeper full-year loss than Wall Street had feared, sending the online radio provider’s stock plummeting 20%.
The gloomy guidance triggered the latest stock dive for Pandora, which has also come under pressure at times this year due to concerns about potential competition from Apple (AAPL).
The Oakland-based company said it earned $2.05 million, or 1 cent a share, last quarter, compared with a profit of $638,000, or break-even on a per-share basis, the year before.
Excluding one-time items, it earned 5 cent a share, besting the Street’s view of just 1 cent.
Revenue soared 60% to $120 million, narrowly topping consensus calls from analysts for $117 million.
Yet Wall Street’s attention was firmly on Pandora’s bleak guidance. Management warned it expects the company to suffer a loss of 9 cents to 12 cents a share in fiscal 2013. Even the optimistic end of that range trails estimates for a loss of 6 cents.
Revenue is seen ranging between $422 million and $425 million, compared with the Street’s view of $429.2 million.
The numbers were also gloomy for the current quarter as Pandora sees non-GAAP losses of 6 cents to 9 cents on revenue of $120 million to $123 million. Analysts had been calling for EPS of 1 cent on revenue of $130.3 million.
Despite the disappointing outlook, Pandora’s third-quarter results show the company continues to gain popularity, especially on the mobile front.
Pandora said its total listener hours soared 67% year-over-year to 3.56 billion last quarter. Active users climbed 47% to 59.2 million, while mobile revenue surged 112% to $73.9 billion.
“This quarter exceeded our expectations as we monetized mobile at record levels,” CEO Joe Kennedy said in a statement.
Shares of Pandora plummeted 22.01% to $7.37 in after-hours trading on Tuesday, threatening to significantly expand their 2012 loss of 10.5%.
Pandora had rallied during regular trading, jumping 5.47% to $9.45.