Late Wednesday, Pandora released its earnings results, beating expectations on surging revenue for the fourth quarter and "stub period" of November and December as the company changes its fiscal calendar to January through December.
However, the company said its active users fell in January to 73.4 million from 76.2 million in December. The company said it now sees a loss in the range of 16 cents to 14 cents a share for the first quarter of 2014 vs. analysts' expectations for a loss of 12 cents. Full-year 2014 earnings are now projected at 13 cents to 17 cents a share on revenue between $870 million and $890 million. Analysts forecast full-year earnings of 19 cents a share on revenue of $896.3 million, according to Thomson Reuters.
Shares of Pandora plunged more than 10% from Wednesday's open to close Thursday at $32.23. On Friday, investors with faith in the company or anxious to get into a growing media sector saw a buying opportunity. By midday, shares had regained some of that ground, up 7% on the day to $34.50.
According to Reuters, Pandora Chief Financial Officer Mike Herring said the company intends to build up its sales force in local markets where it will compete for ad dollars with traditional radio. The company said it intends to focus on securing more listeners, building market share and revenue over profits.