Pinterest reported better-than-expected third-quarter earnings, causing its stock to jump more than 11% in after-hours trading. The company’s revenue for the quarter was $763.2 million, surpassing analysts’ expectations of $743.5 million. Earnings per share also exceeded estimates, with 28 cents per share compared to the projected 20 cents. Pinterest’s revenue increased by 11% from the previous year, reaching $684.6 million in the third quarter of 2022. The number of global monthly active users rose 8% to 482 million, higher than the estimated 473 million. With improved user engagement and advertising results, Pinterest CEO Bill Ready expressed confidence in the company’s unique position as a visual search, discovery, and shopping platform.
Looking ahead, Pinterest expects revenue growth of 11% to 13% for the fourth quarter, surpassing analyst estimates of 11.3%. This positive outlook comes despite the challenges faced by other tech companies due to the Israel-Hamas war. Both Meta and Snap reported adverse effects from the conflict in their recent earnings reports and adjusted their guidance accordingly. However, Pinterest remains optimistic about its future performance. The company recorded a net income of $6.73 million, compared to a loss of $65.2 million in the previous year. While expenses slightly increased in the quarter, Pinterest forecasts a decline in non-GAAP operating expenses for the fourth quarter of 2023. Overall, the strong quarterly results indicate Pinterest’s efficacy in delivering value to users and advertisers, further solidifying its position in the market.