Pinterest stock dives 16% on Q4 revenue miss and soft guidance

PINS
-0.29%

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Shares of Pinterest (NYSE:PINS) fell roughly 16% following the closing bell on Thursday after the social media company missed Q4 revenue expectations and issued soft guidance for the March quarter.

For FQ4 2023, the company posted EPS of $0.53, beating the consensus estimate of $0.51. However, its revenue of $981.3 million fell slightly short of the projected $990.18 million.

In terms of user growth, Pinterest outperformed estimates across all regions.

Monthly active users in the U.S. and Canada reached 97 million against an estimate of 96.25 million.

In Europe, monthly active users hit 135 million, exceeding expectations of 129.79 million, and in the Rest of the World, the platform saw 266 million users, surpassing the forecast of 260.88 million.

On the other hand, the average revenue per user was $2.00, slightly below the projected $2.08.

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, the midpoint of which is lower than the $702 million expected by analysts.

“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.”

Source: Investing.com