Pinterest shares plummet 15% on earnings miss, weak forecast
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on Pinterest Shares tumbled as much as 15% on Tuesday after the company reported that its third-quarter financial results missed earnings per share and provided weak guidance.
Here’s how the company performed compared to analysts’ consensus estimates from LSEG:
- earnings per share: 38 cents adjusted, 42 cents expected
- Revenues: $1.05 billion against expectations of $1.05 billion
Pinterest’s third-quarter sales increased 17% from the previous year, while its net income reached $92.11 million, up 201% from $30.56 million in the same period a year ago.
The company said fourth-quarter revenue will be between $1.31 billion and $1.34 billion. The midpoint of the revenue outlook of $1.325 billion fell short of Wall Street estimates of $1.34 billion.
Following the stock’s move in extended trading on Tuesday, Pinterest erased this year’s gains.
Pinterest said it recorded 600 million global monthly active users in the third quarter, above the 590 million StreetAccount had predicted. In August, Pinterest reported 578 million monthly active users in the second quarter.
The company recorded $306 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, in the third quarter. This was higher than StreetAccount’s estimate of $295 million.
Third-quarter sales in the U.S. and Canada came in at $786 million, below StreetAccount’s estimates of $799 million.
Pinterest’s global average revenue per user in the third quarter was $1.78, below the $1.79 StreetAccount had predicted.
“Our investments in AI and product innovation are paying off,” Pinterest CEO Bill Ready said in a statement. “We have become leaders in visual search and have effectively transformed our platform into an AI-powered shopping assistant for 600 million consumers.”
tech giants Meta, Alphabet And Amazon It announced its latest quarterly earnings last week. These reports showed strong digital ad sales along with large spending on AI infrastructure.
Third-quarter revenue, 98% of which came from online ads, rose 26% year over year to $51.24 billion, representing the company’s strongest annual sales growth since the first quarter of 2024, Meta said.
Sales at Amazon’s online ad unit rose 24% year over year to $17.7 billion; This was a faster growth rate than the tech giant’s AWS cloud computing unit.
Alphabet reported total ad sales of $74.18 billion in the third quarter; That figure was up nearly 13% from $65.85 billion a year ago. The company’s YouTube unit saw its online revenue rise 15% to $10.26 billion in the third quarter.
reddit It reported third-quarter earnings last Thursday, saying sales rose 68% year over year to $585 million, while global daily active uniques rose 19% year over year to 116 million, beating estimates of 114 million.
explode It will announce its quarterly results on Wednesday.
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