Pinterest Reports Impressive Quarterly Results, The Positive Sign Needed By Investors

Shares of image-sharing and social media service platform Pinterest soared 12 percent in extended trading after the company posted impressive third-quarter earnings results. 

The company reported adjusted earnings of 11 cents per share, beating the estimate of 6 cents per share (adjusted), according to Refinitiv. Third-quarter revenue came in at $684.6 million, surpassing the estimate of $666.7 million, according to Refinitiv. 

The company said that it grew its revenue 8 percent year over year on a loss of $65 million and that its monthly average users remained flat at 445 million. In a statement, the company wrote that “Our current expectation is that Q4 2022 revenue will grow mid-single digits on a year-over-year percentage basis, which takes into account slightly greater foreign exchange headwinds than in Q3 2022. We expect our Q4 2022 non-GAAP operating expenses to grow low double digits percent quarter-over-quarter.” It also projects operating expenses growing around 35 percent year over year for 2022. 

The latest report from Pinterest goes against the trend of online advertising companies that have missed estimates from analysts. These companies have cited factors such as reduced ad spending, a possible recession, etc., as what have affected their businesses in recent times. Some of these companies include Snap, Meta, Alphabet, etc.

Pinterest reported revenue growth of 43 percent in the third quarter of 2021, and the 8 percent it is reporting this year is low when juxtaposed. It is, however, the positive sign that investors had their eyes out for after the company’s rivals have missed on their earnings reports so far.

For Snap, earnings per share reported for the third quarter was 8 cents. Revenue for the quarter came in at $1.13 billion, less than the expectation of $1.14 billion that analysts had forecasted, according to Refinnitiv. Global Daily Active Users (DAUs), however, surpassed analysts’ estimate of 358.2 million, according to StreetAccount. Global Daily Active Users (DAUs) for the third quarter came in at 363 million. 

Google’s parent Alphabet reported earnings of $1.06 per share, less than analysts’ estimate of $1.25, according to Refinitiv. Revenue for the third quarter came in at $69.09 billion, falling below the Refinitiv estimate of $70.58 billion. Analysts had expected YouTube advertising revenue to come in at $7.42 billion, according to StreetAccount but Alphabet reported $7.07 billion for third-quarter YouTube advertising revenue. Google Cloud revenue surpassed analysts’ estimate of $6.69 billion with the $6.9 billion it generated in the third quarter. Traffic acquisition costs (TAC) stood at $11.83 for the quarter, below the estimate of $12.38, according to StreetAccount.

Facebook’s parent Meta reported earnings of $1.64 per share in the third quarter, below the expectations of analysts, according to Refinitiv. Third-quarter revenue was $27.71 billion, also falling short of the expectation of $27.38 that analysts had, according to Refinitiv. The social media and technology company reported Daily Active Users (DAUs) of 1.98 billion, exactly what analysts had estimated, according to StreetAccount. Monthly Active Users (MAUs) of 2.96 billion surpassed analysts’ expectations of 2.94 billion, according to StreetAccount. Average Revenue per User (ARPU) for the third quarter was $9.41 compared to analysts’ expectations of $9.83, according to Street Account.

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