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Pinterest Q3 Earnings Preview: What’s in the Picture?
Stock Analysis & Ideas

Pinterest Q3 Earnings Preview: What’s in the Picture?

Shares of image sharing and social media company Pinterest (PINS) is scheduled to report third-quarter 2021 earnings on November 4, after the market closes.

The company’s stock has declined more than 22% in the last year and is now selling at roughly $45. The most apparent reason for the drop is that user growth is declining as people return to their regular lives, post-pandemic.

Solid Q3 results might boost the stock price to some extent.

In anticipation of the 3Q21 print, we used TipRanks’ Website Traffic tool to try and get a sense of the company’s standing. The tool evaluates website traffic volume data sourced from Semrush (SEMR).

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Pinterest’s Website Traffic Details

On both a year-over-year and sequential basis, we noticed a decrease in visitors to Pinterest’s website between July and September.

In the third quarter of this year, the company had 894.2 million unique visits across all devices, down 3.97% year-over-year and 9.99% sequentially.

Based on the data, we can deduce that Pinterest has been losing traffic produced by its domains.

However, when comparing unique website views from January to September 2021 to the same period last year, the company recorded a 14.66% increase year-to-date.

Dissecting User Location, Region-Wise


We can gain new insights by analyzing the data by region in order to gain additional insights from the website traffic statistics.

Geographically, the United States accounted for 38.6% of overall user traffic in September. Meanwhile, India’s visitors accounted for 6.1% of all visits, putting the nation in second place, ahead of Brazil and Mexico, which accounted for 4.5% and 2.5%, respectively.

Other Factors to Note about Pinterest

Pinterest has thrived in the age of e-commerce and digital media, with profits increasing year after year as consumers spend more time online. The prior quarter’s results were outstanding, with both the top and bottom lines beating Wall Street’s expectations.

Despite great Q2 earnings, the monthly active users (MAU) statistics in the second quarter were a significant disappointment, sending the stock plummeting. In its major U.S. market, MAU declined 5% to 91 million, as consumers emerged from pandemic-related lockdowns and spent more time offline.

Investors should be mindful that the company did not provide third-quarter predictions for monthly active users.

Despite weak MAU numbers, Pinterest’s key measure, average revenue per user (ARPU), is increasing. It climbed by 89% year-over-year to $1.32 in the second quarter. If Pinterest’s ARPU rises, it may be able to offset its slower MAU growth and boost its top-line growth.

Investors should, however, wait and watch how Wall Street reacts to Pinterest’s performance, as well as whether the company can thrive in the digital ad age by stabilizing MAU growth in the near future.

Analyst Recommendations on Pinterest

Ahead of the Q3 earnings announcement, BofA analyst Justin Post initiated coverage on the stock with a Hold rating and a price target of $57.00.

Snap (SNAP) and Twitter’s (TWTR) perspective on online advertising in Q4 is cautious, according to Post, while Pinterest’s estimates have extra risk due to harsh comparisons from reopening and product enhancements.

Turning to the rest of the Street, Pinterest stock has a Hold consensus rating, based on 1 Buy and 7 Holds. As for price targets, the average PINS price target of $63.14 implies 39.5% upside potential from the current levels.

Disclosure: On the date of publication, Shalu Saraf had no position in any of the companies discussed in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

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