Pinterest Reports Revenue Miss, Stock Recovers in Extended Trading

Pinterest Inc.’s stock initially experienced a sharp 23% decline before rebounding in extended trading on Thursday following a revenue miss.

Strong Q4 Performance

In the fiscal fourth quarter, Pinterest reported a net income of $201.2 million, or 29 cents per share, compared to $17.5 million, or 3 cents per share, in the same period last year. The adjusted earnings stood at 53 cents per share.

Steady Revenue Growth

Despite the miss, revenue showed a 12% improvement, reaching $981.3 million, up from $877.2 million in the previous year.

Analyst Expectations

Analysts surveyed by FactSet had expected an average of 52 cents per share in net earnings, with revenue reaching $991 million.

Transformational Year for Pinterest

Pinterest Chief Executive Bill Ready expressed satisfaction with the company’s performance, stating, “We had a strong Q4, bookending a transformative year for Pinterest.” The platform witnessed an 11% increase in global monthly active users, reaching an all-time high of 498 million.

Ad Spending’s Impact

The earnings report highlighted the significant role of ad spending, echoing similar trends seen in Facebook Meta Platforms Inc., Alphabet Inc.’s Google, and Snap Inc.

Future Projections

For the first quarter of the new fiscal year, Pinterest projects revenue between $690 million and $705 million. FactSet analysts anticipate first-quarter revenue to total $702 million.

Stock Performance

Despite this slight setback, Pinterest’s stock has surged by an impressive 64% over the past year, outperforming the broader S&P 500 index, which has grown by 22%.

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