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Pinterest Post Stellar Q3 Results

Image sharing and social media company Pinterest (PINS) reported stronger-than-expected Q3 results driven by robust revenue growth.

Quarterly revenues stood at $633 million, up 43% from the same quarter last year, beating the consensus estimates of $631.2 million. Revenues from the United States market and International operations were up by 33% and 96%, respectively.

The company reported earnings per share (EPS) of $0.28, against $0.13 in the same quarter last year, surpassing the Street’s estimate of $0.23.

Notably, the company’s global Monthly Active Users (MAU) and Average Revenue Per User (ARPU) also witnessed growth of 1% and 37%, respectively.

CEO and co-founder of Pinterest, Ben Silbermann, said, “Revenue grew 43% year-over-year and I am proud of the team’s progress in launching a number of new products for both creators and brands, bringing more video content and shoppable features to Pinterest.”

Guidance

For the fourth quarter, Pinterest expects revenue to grow in the high teens percentage range. Non-GAAP operating expenses are anticipated to grow in the low-teens percentage, on a sequential basis, due to continued investment in business, including native content/creator ecosystem, and brand marketing campaign.

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Price Target

Following the results, Piper Sandler analyst Thomas Champion maintained a Hold rating on Pinterest and lowered its price target to $58 from $68, which implies 25.4% upside potential.

The analyst is of the opinion that Pinterest has been making efforts at improving the ad product and is progressing in shopping. However, unsatisfactory guidance for Q4 and engagement trends remain a concern.

Based on three Buys and 11 Holds, the stock has a Hold consensus rating. The average Pinterest price target of $57.33, which implies 24% upside potential from current levels.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Pinterest’s performance.

In the third quarter of this year, the company had 596.2 million unique visits across all devices, up 3.3% year-over-year. However, when comparing unique website views from January to September 2021 to the same period last year, the company recorded a 26.7% increase year-to-date.

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