Pinterest stock soars on big revenue beat and strong user numbers

Pinterest’s stock price soared more than 20% after hours on Wednesday as the company posted strong revenue and user growth in its third-quarter earnings.

Here’s what they reported:

  • Adjusted earnings per share: 13 cents vs. 3 cents expected per Refinitiv
  • Revenue: $443 million vs. $383.5 million per Refinitiv
  • Monthly Active Users (MAUs): 442 million vs. 436.38 million per FactSet
  • ARPU: $1.03 vs. $0.90 per FactSet

Pinterest’s strong beat created a halo effect for its peers in the social media market, with Twitter up more than 5% and both Facebook and Snap up more than 2% in after hours trading.

Pinterest’s strong user growth was fueled by the adoption of international users. The company’s international MAUs was 343 million, up 46% year-over-year. The company said the release of iOS 14 also fueled user growth as approximately 4 million people used Pinterest “for inspiration for customized background filters.”

Pinterest reported that advertiser demand was broad during the third quarter as businesses have adopted to the post-Covid environment.

Additionally, the company said that it saw an increase in spend from advertisers that boycotted social media. That’s a reference to the StopHateForProfit¬†Facebook¬†ad boycott¬†in which more than 1,000 advertisers paused ads on the social network during the month of July in boycott of the company’s hate speech and misinformation policies. This echoes a similar uptick by Snap, which reported its third-quarter earnings last week. Pinterest, however, warned that it is unclear “how sustainable this trend will be.”

The company also announced that it is expecting fourth-quarter revenue to grow about 60% year-over-year, but Pinterest cautioned that it is continuing to navigate uncertainty given the pandemic.

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