How did RSVR's Q4 2024 earnings surprise investors?

Reservoir Media (RSVR) Q4 2024 earnings report reflected both positive and negative aspects, leading to mixed reactions from investors:

1. **Revenue Growth and Strategic Acquisitions**: Reservoir Media reported a 6% increase in revenue, reaching $40.7 million, driven by strong organic growth and strategic acquisitions. The company's ability to sign deals with prominent artists and acquire producer rights bolstered its market position, indicating a positive trajectory for future performance.
2. **EBITDA Improvement and Guidance Raise**: The company's adjusted EBITDA rose by 11% to $17.6 million, and Reservoir Media increased its revenue guidance to $150 million to $153 million, adjusted EBITDA guidance to $59 million to $62 million, showcasing confidence in sustained profitability.
3. **Decline in Recorded Music Revenue and Net Income**: While Music Publishing revenue saw a 10% increase, Recorded Music revenue declined by 1% due to the timing of chart-topping releases and broadcasts. Net income decreased to approximately $200,000 from $700,000 in the previous year, primarily due to a loss on the fair value of swaps. These factors may have disappointed investors expecting stronger profitability.
4. **Market Analysts' Perspectives**: Analysts had anticipated slightly higher earnings, with a consensus rating of "buy" and a median 12-month price target of $13. The reported EPS of $0.00 for the quarter was below the 5 cents reported in the same quarter the previous year, leading to concerns about sustainability.

In conclusion, while RSVR's revenue growth and strategic moves contributed to a positive outlook, the decline in Recorded Music revenue and net income posed challenges. The mixed results likely led to a nuanced investor response, with a focus on the company's strategic direction and operational improvements.