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Pinterest Inc (NYSE: PINS) crashed 20% in extended hours after reporting disappointing revenue for its fiscal fourth quarter.

Pinterest stock down on muted guidance

Investors are concerned also because the management issued downbeat guidance for the future. The social media and image sharing company now forecasts its revenue to fall between $690 million and $705 million in its current financial quarter.

Analysts, in comparison, were at $703 million. Still, Bill Ready – the chief executive of Pinterest Inc said in a press release today:

Pinterest is the rare business where the interests of users and advertisers are aligned. The changes we made have set us up to be a stronger and more efficient company as we double down on our momentum in 2024.

The New York listed firm generated $2.0 of average revenue per user in its recently concluded quarter that also missed Street estimates by some 5 cents. Wall Street currently has a consensus “overweight” rating on Pinterest stock that is down well over 10% year-to-date at writing.

Notable figures in Pinterest Q4 earnings release

• Earned $201 million versus the year-ago $17.49 million
• Per-share earnings also climbed from 3 cents to 29 cents
• Adjusted EPS printed at 53 cents as per the press release
• Revenue jumped 12% year-over-year to $981 million
• Consensus was 51 cents a share on $991 million in revenue

Pinterest ended its recent fiscal quarter with 498 million MAUs (monthly active users) worldwide – up a better-than-expected 11% versus last year, as per the earnings report. CEO Ready also said on Thursday:

2023 was our most productive year yet as we accelerated our product velocity and launched more solutions than ever before.

$SNAP is down 31% after hours after missing on REVENUE and EBITDA, along with WEAK GUIDANCE
-Plans to cut management and reduce stock-based comp
-Sees 1Q revenue $1.10bn -$1.14bn
-Sees 1Q Adj. EBITDA neg -$55-95mn vs est -33mn
-4Q active users 414mn vs est 411mn
-Trying to appeal… pic.twitter.com/T8tOX0vZ6S

— Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) February 6, 2024

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