Pinterest CEO Bill Ready rings the opening bell at the New York Stock Exchange on May 15, 2024.
Brendan McDermid | Reuters
Pinterest Shares plunged 15% on Thursday after the social media company gave weak guidance for its fourth-quarter revenue, even as it beat top and bottom lines with its third-quarter earnings.
According to LSEG, the company has developed as follows:
- revenue: $898 million versus expected $896 million
- Earnings per share: 40 cents adjusted versus 34 cents expected
The company said fourth-quarter revenue would be between $1.125 billion and $1.145 billion. The median fourth-quarter forecast was $1.135 billion, falling short of analyst estimates of $1.143 billion.
Pinterest also said in a filing Thursday that its board approved a $2 billion share buyback.
Pinterest's third-quarter revenue rose 18% from $763.2 million a year ago.
Pinterest said it had 537 million monthly active users worldwide in the third quarter, beating analyst estimates of 532.6 million.
The company's net income rose a whopping 354% year-over-year to $30.56 million. Total costs and expenses for the quarter were $904 million, an increase of 17% compared to $768 million a year ago.
Pinterest's latest quarterly results follow the recent U.S. presidential election earlier this week, as well as several earnings reports from other technology companies with online advertising businesses.
Last week, Amazon said its advertising business grew 19% year over year to $14.3 billion in the third quarter, and Meta announced that third-quarter revenue increased 19% year-over-year to $40.59 billion. However, Meta shares fell slightly due to weaker than expected user numbers and warned of a significant acceleration in infrastructure spending in 2025.
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