Pinterest falls on third quarter revenue miss

Investing.com -- Pinterest Inc (NYSE: PINS) reported third quarter results that fell short of analyst expectations, with shares tumbling 9.6% in after-hours trading Thursday as both earnings and revenue missed Wall Street estimates.

The social media company posted adjusted earnings per share of $0.46, missing the analyst consensus of $0.49 by $0.03. Revenue reached $1.17 billion, below the $1.21 billion estimate, though up 12% YoY from $1.05 billion in the same quarter last year. The company reached an all-time high of 661 million global monthly active users, representing 10% YoY growth.

"Pinterest reached an all-time high of 661 million monthly active users in Q3, with revenue growing 12% year over year," said Bill Ready, CEO of Pinterest. "Our differentiated AI-driven visual search and shopping experiences are making Pinterest increasingly valuable for users and advertisers alike."

For the fourth quarter, Pinterest issued guidance of $1.425 billion to $1.475 billion in revenue, representing 8% to 12% YoY growth. The midpoint of $1.45 billion assumes a modest headwind from foreign exchange based on current spot rates. The company expects fourth quarter adjusted EBITDA in the range of $538 million to $588 million.

Revenue performance varied by region, with U.S. and Canada growing 14% YoY to $894 million, while Europe remained flat at $193 million and Rest of World increased 24% to $87 million. Average revenue per user globally rose slightly to $1.80 from $1.78 in the prior year period.

The company reported GAAP net income of $22 million and adjusted EBITDA of $339 million, representing a 29% adjusted EBITDA margin. Free cash flow for the quarter was $300 million, down 6% from $318 million in the year-ago period.

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