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Pinterest shares surged as much as 20% after the social media company reported fourth-quarter earnings Thursday that beat on revenue.
Here’s how the company performed, according to LSEG:
- Revenue: $1.15 billion vs. $1.14 billion expected
- Fourth-quarter EBIDTA, adjusted: $470.9 million vs. $444.8 million.
Pinterest said its fourth-quarter adjusted earnings per share was $0.56. That figure is not comparable to analyst estimates because the company recorded a deferred tax benefit of $1.6 billion in the fourth quarter.
Revenue for Pinterest’s fourth quarter jumped 18% year over year while net income was $1.85 billion, which included the deferred tax benefit.
The company’s fourth-quarter adjusted EBIDTA margin was 41%, which was higher the 39% that Wall Street was projecting.
Pinterest said it expects first-quarter sales to come in between $837 million to $852 million. The midpoint of that range, $844.5 million, topped analysts’ expectations of $833 million.
The company said global monthly active users grew 11% year over year to 553 million in the fourth quarter. That was ahead of Wall Street estimates of 547.4 million. Pinterest’s fourth-quarter global average revenue per user came in at $2.12, higher than analysts’ expectations of $2.09.
Pinterest’s latest global monthly active user numbers represent nearly 3% growth from 537 million in brought in during the third quarter.
“Our strategy is paying off,” Pinterest CEO Bill Ready said in a statement. “People are coming to Pinterest more often, the platform has never been more actionable, and our lower funnel focus is driving results for users and advertisers.”
Pinterest’s report comes after other social media companies saw their stock prices rise following strong results for the quarter that ended in December.
Snap shares jumped in after-hours trading on Tuesday after the social media company reported better-than-expected fourth-quarter results. Last week, Meta reported fourth-quarter results that beat on the top and bottom.
Reddit will report its fourth-quarter earnings on Wednesday.
