Internet radio service Pandora Media said yesterday that rising expenditures to acquire music and compete with rivals would push fiscal 2014 earnings below analyst expectations. The news sent shares down 5 percent.

Pandora expects earnings excluding certain items for fiscal 2014 to be between break-even and 5 cents a share. Analysts expected a profit of 5 cents.

Its shares fell to $20.50 in extended trading.

For its fiscal second quarter ended July 31, Pandora exceeded expectations, posting revenue of $162 million, a 58 percent rise, as it continued to pick up listeners. Its earnings of 4 cents also topped Wall Street expectations of 2 cents.