Pinterest’s Q4 Results Surpass Expectations; Shares Rise 21%

Image sharing and social media company Pinterest, Inc. (NYSE: PINS) recently reported better-than-expected results for the fourth quarter ended December 31, 2021, on the back of growth in revenues.

Following the upbeat earnings, shares of the company popped 21% to close at $29.65 in Thursday’s extended trading session.

Revenue & Earnings

Pinterest reported quarterly revenues of $846.7 million, up 20% year-over-year. Further, the figure topped the consensus estimate of $827.43 million. The robust growth in revenues was primarily driven by the 61% and 11% year-over-year growth witnessed in international revenues and United States revenues, respectively.

The company reported earnings of $0.49 per share for the quarter, up 14% from the year-ago period. Moreover, the figure surpassed the consensus estimate of $0.46 per share.

In other operating metrics, Pinterest’s average revenue per user (ARPU) increased 23% from the previous year to $1.93. However, the company’s Monthly Active Users (MAUs) saw a 6% year-over-year decline to 431 million.

CEO’s Comments

The CEO of Pinterest, Ben Silbermann, said, “We took important steps in 2021 with the launch of our foundational technology to deliver a video-first publishing platform. And, I’m proud to say that for the first time, we surpassed $2 billion in revenue for the year — growing 52% over the previous year — and reached our first full year of GAAP profitability. As we look ahead to 2022, we plan to further invest in our business as we scale the distribution of Idea Pins through our creator-led content efforts and enhance our core Pinner experience and shopping to make Pinterest the destination for inspiration and action on the internet.”

Stock Rating

On February 3, KeyBanc analyst Justin Patterson reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $54 to $37, which implies upside potential of 51% from current levels.

According to the analyst, the company’s growth can suffer from the prevailing ad measurement headwinds, compressing its margins.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 7 Buys and 16 Holds. The average Pinterest price target of $46.55 implies that the stock has 90% upside potential from current levels. Shares have declined 68.5% over the past year.

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 this quarter.

According to the tool, the Pinterest website recorded a 40.88% monthly rise in global visits in December, compared to the same period last year. Further, year-to-date, the website traffic has grown 22.39%, compared to the previous year.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News:
T-Mobile Posts Mixed Q4 Results; Shares Pop 8%
Qualcomm Q2 Results Top Estimates; Issues Guidance
Roku Expands Advertising Business to Mexico; Shares Fall