Pinterest Reports Strong Revenue but Misses EPS Expectations

Pinterest's revenue surged 18% to $1.154 billion, exceeding estimates, but the EPS of $0.56 fell short of $0.64. Despite the growth in user engagement, higher operating expenses highlight challenges in profitability. Investors should closely watch monetization strategies moving forward.

Date: 07-02-2025

AI Rating: 5

Earnings Per Share (EPS): Pinterest's EPS for Q4 2024 stood at $0.56, missing the analyst estimate of $0.64. This notable shortfall—by 12.5%—indicates ongoing profitability challenges despite other strong metrics.

Revenue Growth: On the positive side, Pinterest achieved an impressive revenue of $1.154 billion, reflecting an 18% year-over-year increase. This growth surpassed analysis expectations and demonstrates robust user engagement and successful monetization strategies.

Net Income: The report does not provide specific details regarding net income, focusing instead on EPS and revenue figures.

Profit Margins: While gross and net profit margins are not explicitly stated, the reduced EPS compared to revenue growth suggests a compromise in profitability, primarily due to high operating expenses.

Free Cash Flow (FCF): The analysis does not include any data concerning free cash flow, thus limiting insights into cash management during this period.

Return on Equity (ROE): There is no mention of ROE in the provided text, leaving this aspect of performance unaddressed.

The overall results demonstrate positive revenue growth and an increase in adjusted EBITDA, which rose by 28% to $471 million. However, the underwhelming EPS puts a spotlight on the company's ongoing struggles with profitability. Going forward, it will be critical for Pinterest to enhance its monetization strategy to align with growing user engagement, particularly in under-monetized international markets. Investors should consider how effectively the company manages its operating expenses and develops its advertising strategies to support sustainable growth.

Stocks: PINS