Pinterest Inc (NYSE:PINS) posted worse-than-expected results for the third quarter after the close on Thursday, sending shares lower. Here’s what you need to know from the report.
- Pinterest shares are sliding. What’s behind PINS decline?
Pinterest Q3 Highlights
Pinterest reported third-quarter revenue of $1.17 billion, missing analyst estimates of $1.21 billion, according to Benzinga Pro. The idea discovery platform company reported adjusted earnings of 46 cents per share for the period, missing estimates of 48 cents per share.
Total revenue was up 12% on a year-over-year basis as Pinterest’s global monthly active users increased 10% year-over-year to an all-time high of 661 million. Average revenue per user in the quarter was $1.80 globally and $8.38 in the U.S. and Canada.
Net cash from operations totaled $316 million in the quarter, and free cash flow came in at $300 million. The company exited the period with approximately $654.34 million in cash and cash equivalents.
“Our differentiated AI-driven visual search and shopping experiences are making Pinterest increasingly valuable for users and advertisers alike,” said Bill Ready, CEO of Pinterest.
“We are focused on sharpening our execution, scaling our performance advertising solutions, and building an ecosystem that captures high-intent discovery and converts it into durable, long-term growth.”
Pinterest sees fourth-quarter revenue in the range of $1.43 billion to $1.48 billion, versus estimates of $1.52 billion. The company anticipates adjusted EBITDA of $538 million to $588 million in the fourth quarter, versus $339 million in the third quarter.
Pinterest management is currently discussing the quarter on an earnings call that started at 4:30 p.m. ET.
PINS Shares Plummet After Earnings
PINS Price Action: Pinterest shares were down 9.69% in Thursday’s after-hours session, trading at $17.99 at the time of publication, according to Benzinga Pro.
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