Pandora stock plunges more than 20% on revenue miss (P)
<img style="float:right;" src="http://static6.businessinsider.com/image/54d3dce06da8110219a0aa13-953-715/brian-mcandrews-9.jpg" border="0" alt="Brian McAndrews ">
Pandora just announced its fourth-quarter earnings, and the stock is down more than 23% after hours on revenues that missed Wall Street estimates.
The company reported Q4 revenue of $268 million, lower than the company's expectations of $273 to $278 million. Analysts were expecting about $276 million.
Pandora's Q1 2015 revenue guidance also disappointed analysts and investors. Pegged at $244 million, it came in at between $220 million and $225 million.
Fourth quarter EPS was $0.19, which was in line with expectations.
People listened to 20.03 billion hours of music on Pandora in 2014, which is up 20% from the year before. There were 81.5 million total active listeners, which is up 7% year over year (for reference, Spotify reports over 60 million active listeners).
Generally, the number of hours of music listened to is more imporant than the number of active users, because it is the time that dictates how much advertising Pandora can sell.
Advertising revenue was $220.1 million, a 36% year-over-year increase. Subscription and other revenue was $47.9 million, a 24% year-over-year increase.
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