Shares of Pandora where free-falling 15 percent in after-hours trading on Tuesday after the digital music company reported uninspiring quarterly earnings results.
The provider of online music reported revenue and profit that missed the expectations of analysts, then provided guidance that missed their predictions as well.
The company said it lost $8.2 million during the fourth quarter, up from a loss of $1.4 million. Revenue improved 71 percent to $81.3 million.
Pandora said 89 percent of its revenue came from advertising and the remainder came from "subscription services and other."
The company said it recorded 2.7 billion listener hours, up 99 percent year over year and that it commanded nearly 70 percent of the share of the top 20 U.S. Internet radio services. Active users grew 62 percent from last year to 47 million.
The big numbers didn't impress Wall Street, though. After the stock dropped 3 percent during the regular session to $14.27 it continued to sink after the closing bell.
The company reported a loss of 3 cents per share on revenue of $81.3 million. Just yesterday, sn upgrade from a Stifel Nicolaus & Co. analyst a day prior to Pandora's earnings call helped push the company's stock up 5.5% Monday and gave the company a market value of $2.37 billion.
In the release, Pandora chairman & CEO Joe Kennedy said: "The fourth quarter was a strong finish to fiscal 2012, which was highlighted by record revenue, radio market share, listening hours and active users," stated Joe Kennedy, Chairman & CEO of Pandora. "Reflecting on our first fiscal year as a public company, we have many accomplishments to be proud of and much to look forward to in the year ahead. Pandora continues to rapidly disrupt the radio industry and has only just begun to realize the potential of our $37 billion U.S. market opportunity."
Total revenue for the quarter was $81.3 million, a 71% year-over-year increase, according to the release. Advertising revenue was $72.1 million, a 74% year-over-year increase. Subscription and other revenue was $9.2 million, a 51% year-over-year increase.