Pinterest shares initially plunged 23%, but rebounded sharply in after-hours trading Thursday after reporting lost revenue and offering sketchy guidance, rising slightly.
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report Net income for the fiscal fourth quarter was $201.2 million, or 29 cents per share, compared with net income of $17.5 million, or 3 cents per share, in the year-ago period. Adjusted earnings were 53 cents per share.
Revenues increased 12% to $981.3 million from $877.2 million in the same period last year.
Analysts surveyed by FactSet had on average expected revenue of $991 million and net income of 52 cents per share.
“We had a strong fourth quarter, capping off a transformative year for Pinterest,” Pinterest CEO Bill Ready said in a statement announcing the numbers. The number of monthly active users worldwide increased by 11% year-on-year, reaching an all-time high of 498 million.
in Conference call Reedy said late Thursday that the company is working with analysts on an AI-based automated advertising system. He added that Google will join Pinterest as a third-party ad integration partner.
Pinterest expects first-quarter revenue of $690 million to $705 million. FactSet analysts expect first-quarter sales of $702 million.
Advertising spending played a big role in the earnings report Similar to META from Facebook’s parent company, Meta Platforms Inc.
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“Pinterest’s strong but subdued fourth-quarter numbers are likely to draw some scrutiny from the market, just as Meta shattered expectations just last week,” Jeremy Goldman, principal analyst at Insider Intelligence, said in an email message. I need to take it,” he said.
Pinterest stock is up 64% in the last year, while the broader S&P 500 index SPX is up 22%.
