Pinterest has delivered a robust fourth-quarter performance, surpassing Wall Street expectations and demonstrating significant growth in user engagement and revenue. The midpoint of Pinterest's fourth-quarter sales range was $844.5 million, exceeding analysts' predictions of $833 million, and the company recorded a deferred tax benefit of $1.6 billion. The social media platform also reported a surge in global monthly active users, which grew 11% year over year to reach 553 million.
The company's fourth-quarter sales reached $1.15 billion, outperforming Wall Street's forecast of $1.14 billion. This marks an 18% increase in revenue compared to the previous year. Additionally, Pinterest's global average revenue per user was reported at $2.12, surpassing analysts' expectations of $2.09.
Pinterest's CEO, Bill Ready, highlighted the platform’s increased engagement and effectiveness for both users and advertisers.
"People are coming to Pinterest more often, the platform has never been more actionable, and our lower funnel focus is driving results for users and advertisers." – Bill Ready, Pinterest CEO
The company's net income for the fourth quarter stood at $1.85 billion, incorporating the deferred tax benefit of $1.6 billion. Although Pinterest's adjusted earnings per share were reported at $0.56, this figure is not directly comparable to analyst estimates due to the substantial tax benefit recorded.
Pinterest's financial performance indicates strong future prospects as the company anticipates first-quarter sales to range between $837 million and $852 million. The platform’s adjusted EBITDA margin was 41%, higher than Wall Street's projection of 39%, signaling efficient operational management.
The company’s latest results come on the heels of positive earnings reports from other social media firms, boosting investor confidence in the sector. Notably, Snap shares also rose in after-hours trading on Tuesday following their quarterly earnings announcement.