- Pinterest said it expects sales in the first quarter to grow in the “low single digits” compared to a year ago. Analysts were expecting an increase of 6.9% to $614.8 million.
- The company’s fourth-quarter earnings report comes after digital advertising companies such as Facebook parent Meta and Google parent Alphabet reported tepid numbers.
- Amazon’s digital advertising unit represented a bright spot during the fourth quarter, with sales rising 19% year-over-year to $11.6 billion.
Shares of Pinterest slumped in extended trading on Monday after the company reported revenue that missed analyst expectations and issued a lighter forecast for the first quarter. The stock pared its losses after earlier falling up to 12%.
Here’s how the company did.
- Income: $877 million versus the $886.3 million expected, according to Refinitiv.
- Earning: 29 cents per share versus the 27 cents expected, according to Refinitiv.
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Pinterest said it expects sales in the first quarter to grow in the “low single digits” compared to a year earlier. Analysts were expecting an increase of 6.9% to $614.8 million.
The company said Todd Morgenfeld, its chief financial officer and head of business operations, will leave the company on July 1, 2023.
Pinterest’s fourth-quarter revenue rose 4% year-over-year to $877 million, while total sales for 2022 grew 9% year-over-year to $2.8 billion.
Pinterest reported net income of $17 million in the fourth quarter, but reported a net loss of $96 million for the full year.
The company said its global monthly active users grew 4% year-over-year to 450 million. Average revenue per user, or ARPU, for the US and Canada region increased 6% to $7.60 in the fourth quarter.
In a statement, Pinterest CEO Bill Ready said, “While the industry as a whole faces headwinds, we are rapidly adapting to the changing macro environment and working to create a more positive online experience for our users and advertisers. Committed.”
The company also said that Andrea Mallard, its chief marketing and communications officer, and Bill Watkins, its chief revenue officer, will now report directly to Ready.
Pinterest’s fourth-quarter earnings came after several ad-supported companies reported lukewarm results.
Meta said last week that its fourth-quarter sales fell 4% year-over-year to $32.2 billion, while Alphabet’s Google advertising business reported $59 billion in fourth-quarter revenue, up from the same quarter last year. was 3.6% less. Additionally, revenue at Alphabet’s YouTube unit fell 8% year-over-year to $7.96 billion in the fourth quarter.
Snap said fourth-quarter sales were up slightly year-over-year to $1.3 billion, which missed analyst expectations of $1.31 billion.
Amazon’s digital advertising unit represented a bright spot during the fourth quarter, with sales in that unit rising 19% to $11.6 billion.
pinterest Allegedly Meta, joining a growing list of technology companies such as Alphabet and Salesforce that have furloughed workers in recent months, laid off nearly 150 employees last week.
In August, Elliott Management confirmed it was a top investor in Pinterest and voiced for Ready, who previously led Google’s commerce business. Ready joined Pinterest in June 2022, replacing longtime CEO and co-founder Ben Silbermann.
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