Pandora's fourth quarter numbers got a poor reception Thursday as the company's stock price fell as much as 26% in after hours trading. The company missed its estimates and gave a weaker-than-expected forecast outlook for the current quarter.
The music streaming service reported revenues of $268.0 million versus analysts' estimate of $277 million. Earnings came in as expected, at $0.18 a share. For the first quarter, Pandora is expecting revenues of $220 million to $225 million, compared to the $244 million that analysts had predicted.
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Additionally, the firm handed in revenue guidance for the current quarter that disappointed. The company expects revenue of between $220 million and $225 million, versus Wall Street expectations for $244 million.
“We end 2014 in a very good position, with stronger relationships across the music community, record monetization metrics and highly engaged users,” Brian McAndrews chairman, president and CEO of Pandora, said in a press release. “We’re looking forward to an exciting and productive 2015."