Benjamin “Ben'” Silbermann, co-founder and chief executive officer of Pinterest.
Patrick T. Fallon | Bloomberg | Getty Images
Pinterest on Thursday reported better-than-expected earnings and revenue for the third quarter despite a decline in monthly users.
The company’s stock price was up more than 7% in extended trading after closing on Thursday at its lowest in over a year.
Here are the key numbers:
Adjusted earnings per share: 28 cents vs. 23 cents expected by RefinitivRevenue: $633 million vs. $630.9 million expected by RefinitivMonthly active users: 444 million vs. 460 million expected by StreetAccountAverage revenue per user: $1.41 vs. $1.38 forecast by StreetAccount
Pinterest said monthly active users fell 2% from the 454 million the company reported in July. This was the second quarter in a row that Pinterest saw a decline in monthly users.
The company said that, as of Nov. 2, its U.S. MAUs were approximately 89 million while global MAUs were 447 million. Those numbers are down 9% and 2.6%, respectively, from the fourth quarter.
Revenue climbed almost 43% from a year earlier. Pinterest also posted a net income of $94 million, even with its profit from a year ago.
Pinterest provided a fourth-quarter revenue growth estimate “in the high teens” on a year-to-year basis. That was below Refinitiv expectations of 23.9% growth.
Advertisers’ willingness to spend on Pinterest’s services has flactuated due to pandemic driven factors, including supply chain issues, rising commodity prices and labor shortages, the company said in a financial filing. The company also said that is has experienced lower levels of user engagement, growth and retention rates as pandemic restrictions begin to lessen, and it may continue to experience this, the company’s filing said.