The "fiscal cliff" is to blame for Pandora's lowered revenue guidance, not increasing competition, the company's CEO Joe Kennedy said on CNBC's "Squawk on the Street" on Wednesday.
The fiscal cliff of automatic spending cuts and tax increases set for the end of the year may cause advertisers to be more cautious in their spending which could hurt Pandora's revenue, Kennedy said.
"We have concern that the Q1 spending by advertisers may be unusually back-weighted into February and March this year," he said.
Pandora's fiscal fourth quarter ends Jan. 31, making the company "unusually sensitive" to ad spend in the first quarter because of fiscal cliff fears, Kennedy said.