Pinterest Stock Soars on Higher-Than-Estimated Revenue, Record Monthly Users
KEY TAKEAWAYS
Pinterest (
PINS
) shares are jumping more than 20% in premarket trading Friday, a day after the social media service reported record monthly active users and fourth-quarter revenue that topped estimates.
The company reported revenue that surpassed $1 billion for the first time at $1.15 billion, up 18% year-over-year and narrowly beating consensus estimates compiled by Visible Alpha. It was also higher than the Q4 revenue of
$1.125 billion to $1.145 billion
the company had projected last quarter.
Adjusted
earnings per share (EPS)
of $0.56 missed expectations of $0.65.
Pinterest had a record 553Ā million global monthly active users in Q4, up 11%.
“Our strategy is paying off,” Pinterest CEO Bill Ready said. “People are coming to Pinterest more often, the platform has never been more actionable, and our lower funnel focus is driving results for users and advertisers.”
Pinterest Sees Q1 Revenue of $837M to $852M
Pinterest, which has
rolled out
artificial intelligence (AI)
tools for advertisers,Ā said it expects first-quarter revenue between $837 million and $852 million, with the midpoint of the range below Visible Alpha consensus.
Citi analysts reiterated their “buy” call on the stock Friday, saying that the results have given them “greater conviction that Pinterest is in the earlier days of its transition to an always-on, performance platform.”
Pinterest shares, which are up 22% premarket, had been down almost 20% over the last 12 months through Thursday’s close.
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