Pinterest Q3 revenue falls short of estimates on slower ARPU growth, communication sector drag
Overview
Social media platform's Q3 revenue grew 12% yr/yr but missed analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company reported record 661 mln global monthly active users, up 10% yr/yr
Outlook
Pinterest expects Q4 revenue between $1.43 bln and $1.48 bln, up 8%-12% y/y
Company forecasts Q4 adjusted EBITDA of $538 mln to $588 mln
Company expects modest foreign exchange headwind in Q4
Result Drivers
AI-DRIVEN FEATURES - Co said AI-powered visual search and shopping tools increased value for users and advertisers, per CEO Bill Ready
USER GROWTH - Co said record global monthly active users contributed to revenue growth
INTERNATIONAL EXPANSION - Co said growth in Rest of World revenue and users outpaced other regions
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.17 bln | $1.21 bln (32 Analysts) |
Q3 Adjusted EPS | Miss | $0.46 | $0.48 (23 Analysts) |
Q3 Adjusted Net Income | Slight Miss* | $270.29 mln | $270.96 mln (15 Analysts) |
Q3 Net Income | $21.52 mln | ||
Q3 Adjusted EBITDA | Miss | $339.21 mln | $346.96 mln (29 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 20 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Pinterest, Inc. is $28.00, about 33.8% above its October 28 closing price of $20.92
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)