Pinterest Q4 Results: Revenue Up, Earnings Miss Expectations

Pinterest recently reported Q4 results showing revenue growth of 18% year-over-year despite earnings per share falling short of estimates. Positive user growth and expectations pulled the stock up 19%. Investors are advised to monitor Pinterest's performance closely.

Date: 11-02-2025

AI Rating: 6

Earnings Per Share (EPS): Pinterest reported adjusted earnings of $0.56 per share, which is below the consensus estimate of $0.64 and slightly above the $0.53 from the previous year. This indicates a mixed earnings performance which may concern investors.

Revenue Growth: The company announced revenue of $1.15 billion for Q4, reflecting an 18% year-over-year growth. This growth is in line with expectations and suggests that Pinterest is increasing its market presence.

User Engagement: The report highlights an increase in monthly active users (MAUs) to 553 million, an 11% increase year-over-year, which is a positive signal for future growth. Average revenue per user (ARPU) has also increased by 6% to $2.12, indicating improved monetization.

Profit Margins: Adjusted EBITDA margin expanded by 300 basis points to 41% in Q4, showing improvement in profitability metrics, which may support further investment interest.

Outlook and Guidance: The guidance for Q1 includes expectations for $845 million in sales and $163 million in adjusted EBITDA, both of which exceed consensus estimates. This adds to the positive sentiment surrounding the stock, despite past volatility.

Pinterest's mixed earnings but strong guidance might put pressure on the stock. The reported growth in user metrics and revenue could lead to positive price movement in the short term, but the underperformance against the S&P 500 might raise some caution among investors. The macroeconomic environment remains a factor to watch.

Stocks: PINS