Pinterest Inc.’s stock surged over 6% in early extended trading on Monday following its announcement of quarterly results that exceeded analysts’ expectations in terms of revenue and earnings.
Impressive Financial Performance
The company reported a net income of $6.73 million, or one cent per share, for the fiscal third quarter. This is a significant improvement from the loss of $65.2 million, or 10 cents per share, in the same quarter last year. Adjusted earnings stood at 28 cents per share.
Furthermore, Pinterest’s revenue reached $763.2 million, marking an 11% increase compared to the $684.6 million generated in the previous year.
Exceeding Analysts’ Expectations
When surveyed by FactSet, analysts had predicted average net earnings of 21 cents per share on a revenue of $744 million. However, Pinterest’s strong performance surpassed these estimates.
Positive Outlook for the Future
Pinterest’s Chief Executive, Bill Ready, expressed his satisfaction with the company’s Q3 results, stating, “We continued to accelerate the business in Q3 and are driving strong revenue performance, robust global MAU growth, and substantial margin expansion.” The platform also experienced an 8% increase in global monthly active users, reaching a total of 482 million.
Looking ahead to the fourth quarter, Pinterest executives anticipate revenue growth between 11% and 13%. On the other hand, FactSet analysts are predicting fourth-quarter revenue to reach $978 million.
Stock Performance
Despite a modest increase of 3% this year, shares of Pinterest have demonstrated steady growth. In contrast, the broader market index, S&P 500 (SPX), has increased by 8.5%.
Pinterest’s exceptional financial results and positive outlook indicate its continued success in the social media industry.