Pinterest reported better-than-expected earnings for the fourth quarter surpassing the expectations of analysts. Before publishing its report, the company’s stock had suffered a 10 percent decline on Thursday following Meta’s disappointing report that came on Wednesday. On Thursday, its share price eventually recovered the losses it had earlier incurred on Wednesday after it reported its quarterly earnings. A bullish report from Snap also helped boost the market.
The company reported earnings per share of $0.49, adjusted compared to $0.45 that analysts had estimated, according to Refinitiv. Revenue for the quarter was up 20 percent YoY at $847 million, surpassing the $827 million estimate that analysts estimated.
Pinterest’s global monthly active users suffered a 6 percent decline YoY to 431 million. In the fourth quarter, monthly active users declined 12 percent to 86 million in the US. Average revenue, however, rose 23 percent in the quarter to $1.93 per global user.
For guidance, the company said that it expects revenue to experience growth “in the high teens” YoY. Analysts expectation stands at 18 percent YoY.
The company also reported a non-GAAP net income of $339 million, or 49 cents a share, up 43 cents from the same quarter in 2020. The figure surpassed estimates of 45 cents from analysts.
In the earnings report, Pinterest’s CEO Ben Silbermann said “We took important steps in 2021 with the launch of our foundational technology to deliver a video-first publishing platform. And, I’m proud to say that for the first time, we surpassed $2 billion in revenue for the year — growing 52 percent over the previous year — and reached our first full year of GAAP profitability”.
The company’s shares gained as much as 29 percent in after-hours trading Thursday after suffering losses incurred as a result of Facebook’s below-expectation results that made investors run from social media stock. Pinterest shares, however, rose 17.7 percent to $28.85 in premarket trading Friday.