Pinterest Inc.’s stock initially plummeted 23% before rallying in extended trading Thursday after it reported a revenue miss and offered ho-hum guidance.
Pinterest
PINS,
reported fiscal fourth-quarter net income of $201.2 million, or 29 cents a share, compared with net income of $17.5 million, or 3 cents a share, in the year-ago quarter. Adjusted earnings were 53 cents a share.
Revenue improved 12% to $981.3 million, from $877.2 million a year ago.
Analysts surveyed by FactSet had expected, on average, net earnings of 52 cents a share on revenue of $991 million.
“We had a strong Q4, bookending a transformative year for Pinterest,” Pinterest Chief Executive Bill Ready said in a statement announcing the numbers. Global monthly active users rose 11% to an all-time high of 498 million year over year.
Pinterest projects first-quarter revenue of between $690 million and $705 million. FactSet analysts expect $702 million in first-quarter revenue.
Ad spending played a big role in the earnings report as they did for Facebook parent Meta Platforms Inc.
META,
Alphabet Inc.’s
GOOGL,
GOOG,
Google and Snap Inc.
SNAP,
“Pinterest’s solid but unspectacular Q4 numbers should see some scrutiny from the market, which saw Meta blow out expectations just last week,” Insider Intelligence principal analyst Jeremy Goldman said in an email message.
Shares of Pinterest have surged 64% over the last year, while the broader S&P 500 index
SPX
has increased 22%.
