The stock price of Pandora Media Inc (NYSE:P) dropped almost 9% to $32.65 per share during extended trading hours after the company reported its fourth quarter and full year 2013 financial results on Wednesday. The decline was primarily driven by its lower guidance for the first quarter and full year 2014.

Pandora

Over the past 52-week range, the stock price of Pandora Media Inc (NYSE:P) climbed from $11.13 to $37.95 per share.

Pandora financial results

Pandora Media Inc (NYSE:P) reported $0.11 non-GAAP diluted earnings per share  and $200.8 million non-GAAP total revenue for the fourth quarter of 2013. The company said its revenue grew 51% year-over-year.

According to the company, its advertising revenue for the quarter was $162 million, an increase of 39% year-over-year.

For the full year 2013, the internet radio service provider posted $0.06 non-GAAP diluted earnings per share, and its non-GAAP revenue was $647.5 million, an increase of 56% year-over-year. Pandora Media Inc (NYSE:P) said its advertising revenue increased 45% to $521.2 million.

In a statement, Brian McAndrews, chairman, president, and CEO of Pandora Media Inc (NYSE:P) said, “Pandora continued growing revenue over 50% year-over-year. We continued to improve monetization, which was reflected in record RPMs on all dimensions of our business, and drove our first non-GAAP profitable year as a public company.”

In addition, McAndrews said the company reinvested in its business with notable achievements, improvement in products, innovation across multiple technologies, devices and automotive platforms as it continues its efforts in reinventing radio and make Pandora Media Inc (NYSE:P) available anytime, anywhere for millions of listeners.

Pandora financial guidance

For the first quarter of 2014, Pandora Media Inc (NYSE:P) estimated that it will be able to deliver non-GAAP revenue in the range of $170 million to $176 million and non-GAAP basic and diluted per share losses in the range of $-0.16 to $-0.14.

For the full year 2014, the internet radio service provider expected to deliver non-GAAP revenue in the range of $870 million to $890 million and non-GAAP diluted EPS in the range of $0.13 to $0.17.

The average estimate of analysts for the company is to post $-0.12 losses per share and $171.70 million revenue for the first quarter of 2014. For the entire year, the company is expected to generate $0.19 earnings per share and $896.30 million revenue.