The company added that it's surpassed 4.3M paid subscribers. Pandora Plus had generated more than 375,000 net new subs by the end of December, it said.
The company's also pursuing operational efficiency measures, which include reducing U.S. employees by about 7% by the end of Q1 (those cuts exclude Ticketfly), and "leveraging its analytics platform and ad insertion logic to drive additional revenue and realize leverage in content costs."
Full results for Q4 and the fiscal year will be released on Thursday, Feb. 9, after the close. Analysts expect revenue of $368.2M, EBITDA of -$43.8M, and EPS of -$0.23.
Pandora Media (NYSE:P) shares have fallen 3.2% in postmarket trading after a Sirius XM (SIRI +2.4%) exec dampened speculation about M&A as "not very likely."
Shares had gained in December amid increasing chatter about a tie-up. That followed summer reports that Liberty Global had floated a $15/share offer that looked like it was rebuffed, and comments from Liberty chief Greg Maffei that any streaming buy would be linked to Sirius XM.
Speaking at a Citigroup conference, Sirius XM Chief Financial Officer David Frear says despite all that, "I have doubts" about Pandora's strategy and isn't sure about cross-selling opportunities.
Though a development to be reasonably expected should M&A truly be under serious consideration, the situation stays on watch as related uncertainty has driven Pandora (NYSE:P) 20%+ over the last week and Sirius XM Holdings (NASDAQ:SIRI) lower by almost 4%.
Analyst James Cakmak ideates an Amazon (AMZN +2.1%) combination representing greater long-term potential for Pandora's (P +1.6%) customer and business prospects than a rumored Sirius XM Holdings arrangement.
Notes a prospective stock deal would equate to approximately 1% of Amazon's overall market capitalization and the value Amazon could derive from various potential integrations (Alexa, Prime) of the Pandora service.
Bloomberg updates on the development, suggesting Sirius XM Holdings chairman Greg Maffei had expressed new takeover interest for Pandora. Neither a price or a response by Pandora to the approach, however, have been issued.
Liberty Media (NASDAQ:LMCA), Sirius XM Holdings (NASDAQ:SIRI) parent, had prior informally offered $15 per share terms in July.
Pandora (NYSE:P) closes out the week with 16% gains, Sirius XM Holdings 5.6% losses on the situation.
Pandora Media (NYSE:P) is 5.3% lower today after its Q3 earnings miss yesterday, and a few analysts take the opportunity to downgrade shares.
Albert Fried dinged the stock two notches, lowering its rating to Underweight from Overweight. "Given the negative guidance, negative FCF, and convoluted business model we think Pandora is no longer a takeover target," says analyst Rich Tullo.
A lull alone would still support a deal, he says, but burning cash while taking risks with the user base (potentially driving customers to iTunes or Spotify) makes it less attractive. He's got an $8 price target, implying 30%-plus downside from today's lowered price.
FBR Capital also downgraded, to Market Perform, but with a $12 price target (vs. current $11.54). But Mizuho is sticking with a Buy rating (while lowering its target to $12 from $13) due to some positives from Investor Day: "While we like the long-term opportunity of subscription, proof will be in execution over the next few quarters."
Nomura stayed Neutral and reiterated its $14 price target (21% upside from today), as management reiterated its ambitious growth targets and subscription initiatives. The Street will get more optimistic if Pandora can prove its $10/month product against fierce competition from Spotify, Apple, Amazon and YouTube, it said.
Pandora Media (P -4.8%) is off another 7.6% after hours following a miss on top and bottom lines and below-consensus guidance in its Q3 earnings report.
Losses narrowed on a GAAP basis to $61.5M from $85.9M. Adjusted EBITDA fell to -$6.6M from last year's positive $31.5M.
Total listener hours grew about 5% from last year, to 5.4B. Active listeners fell, though, to 77.9M from 78.1M.
Revenue breakout: Advertising, $273.7M (up 7.5%); Subscription and other, $56.1M (down 1.4%); Ticketing service, $22.1M (new, but up about 25% compared to Ticketfly's pre-acquisition results).
Pandora's guiding to revenue of $362M-$374M in Q4, below consensus for $391.7M, and adjusted EBITDA of -$51M to -$39M. For the full year, it's forecasting revenue of $1.354B-$1.366B (below consensus for $1.4B), and adjusted EBITDA of -$140M to -$128M.