Pinterest Stock Plummets 16% After Missing Q4 Revenue Expectations
Shares Plummet Following Q4 Revenue Miss
Shares of Pinterest (NYSE:) took a nosedive of roughly 16% after the social media company missed Q4 revenue expectations and issued soft guidance for the March quarter.
Strong Earnings, But Revenue Falls Short
For FQ4 2023, the company reported earnings per share of $0.53, surpassing the consensus estimate of $0.51. However, its revenue of $981.3 million fell slightly short of the projected $990.18 million.
User Growth Exceeds Expectations
Pinterest outperformed estimates across all regions in terms of user growth. Monthly active users in the U.S. and Canada reached 97 million, exceeding the estimated 96.25 million.
Robust User Growth in Europe and Rest of the World
In Europe, monthly active users hit 135 million, surpassing expectations of 129.79 million. In the Rest of the World, the platform saw 266 million users, surpassing the forecast of 260.88 million.
Revenue Per User Below Projections
On the other hand, the average revenue per user was $2.00, slightly below the projected $2.08.
Robust Adjusted EBITDA Margin and Soft Guidance
The company also reported a robust adjusted EBITDA margin of 37%, higher than the 36.2% analysts had forecasted. Looking ahead, Pinterest anticipates its Q1 revenue for 2024 to be between $690 million and $705 million, with the midpoint lower than the $702 million expected by analysts.
CEO’s Perspective on Performance
“We had a strong Q4, bookending a transformative year for Pinterest,” said Bill Ready, CEO of Pinterest. “We expect Q1 2024 Non-GAAP operating expenses to be in the range of $450 million to $465 million, representing 9-13% growth year over year.”
