Pinterest stock slips premarket on Q4 revenue miss and soft guidance

February 8, 2024 4:21 PM EST
(Updated - February 9, 2024 6:48 AM EST) -- 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."

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