Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Pinterest stock slips premarket on Q4 revenue miss and soft guidance

Published 02/08/2024, 04:21 PM
Updated 02/09/2024, 06:02 AM
©  Reuters Pinterest (PINS) stock dives 16% on Q4 revenue miss and soft guidance -- Shares in Pinterest (NYSE:PINS) tumbled in premarket U.S. trading on Friday after the social media company missed fourth-quarter revenue expectations and issued soft guidance for the March quarter.

For the fourth-quarter, the company posted earnings per share of $0.53, beating the consensus estimate of $0.51. However, its revenue of $981.3 million fell slightly short of the projected $990.18 million.

In terms of user growth, Pinterest outperformed estimates across all regions.

Monthly active users in the U.S. and Canada reached 97 million against an estimate of 96.25 million.

In Europe, monthly active users hit 135 million, exceeding expectations of 129.79 million, and in the Rest of the World, the platform saw 266 million users, surpassing the forecast of 260.88 million.

On the other hand, the average revenue per user was $2.00, slightly below the projected $2.08.

The company also reported a robust adjusted earnings before interest, tax, depreciation and amortization margin of 37%, higher than the 36.2% analysts had forecasted.

Looking ahead, Pinterest anticipates its first-quarter revenue for 2024 to be between $690 million and $705 million, the midpoint of which is lower than the $702 million expected by analysts.

“We had a strong Q4, bookending a transformative year for Pinterest,” said Bill Ready, CEO of Pinterest. "We expect Q1 2024 Non-GAAP operating expenses to be in the range of $450 million to $465 million, representing 9-13% growth year over year.”

In a note to clients, analysts at Jefferies said Pinterest's new products, as well as partnerships with tech giants like Google and Amazon, mean that the firm's "fastest rev[enue] growth rates are still ahead of them." 

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.