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Pinterest’s Quarterly Revenue Falls Short of Estimates, But Profit Exceeds Expectations

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Pinterest, the popular social media site, reported its fourth-quarter revenue of $981.3 million, which was a 12% increase from the previous year. While this fell slightly below the Street consensus forecast of $991 million, the company still managed to exceed profit expectations. With Snap’s disappointing results juxtaposed against Meta Platform’s better-than-expected quarter (Facebook’s parent company), Wall Street will likely scrutinize these numbers.

Strong Financial Performance

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for Pinterest were $364.8 million, marking an impressive 86% increase from the previous year. This surpassed the Street consensus of $357 million. The company also successfully reduced its operating expenses by 10% within the forecasted range of 9% to 13% decline.

Growing User Base

Pinterest experienced an 11% growth in global monthly active users, reaching a total of 498 million in the last quarter. This surpassed the consensus call of 487 million, showcasing the platform’s ongoing popularity and engagement among users.

CEO’s Vision for the Future

Bill Ready, Pinterest’s CEO, expressed confidence in the company’s future prospects. Ready highlighted recent cost-cutting initiatives and other strategic changes that position Pinterest as a stronger and more efficient company for future growth. He emphasized the company’s commitment to building momentum throughout 2024.

Outlook for Q1 and Beyond

Looking ahead, Pinterest projects revenue for the first quarter in the range of $690 million to $705 million, representing a 15% to 17% increase. However, the middle of this range falls slightly below the Street consensus of $702 million. The company also expects non-GAAP operating expenses in the range of $450 million to $465 million, reflecting a growth rate of 9% to 13% compared to the same quarter last year.

For the entire 2024 fiscal year, Pinterest reported a revenue of $3.1 billion, marking a 9% increase, with adjusted profits reaching $1.09 per share.

Share Performance

As of the close of trading on Thursday, Pinterest shares had risen nearly 10% year-to-date. Over the past 12 months, the stock has seen an impressive 64% increase.

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