Pinterest beats analysts’ estimates for earnings and revenue in the fourth quarter

Pinterest announced its quarterly performance results on Thursday. Having beaten the analysts’ estimate for revenue and earnings, the company was reported 17% higher in the stock market in extended trading on Thursday.

According to Refinitiv, experts had anticipated the American social media web and mobile company to generate $371 million in revenue. On the earnings front, analysts had expected 8 cents of earnings per share. In its fourth-quarter earnings report, Pinterest noted a significantly higher $400 million in revenue in the recent quarter while its EPS (earnings per share) was printed at 12 cents.

Pinterest Generated Higher Than Expected Revenue Per User In Q4

FactSet had estimated Pinterest to post 331.3 million monthly active users in the fourth quarter and $1.14 in average revenue per user. Pinterest also beat FactSet’s forecast recording a sharply higher 335 million monthly active users and $1.22 of average revenue per user in Q4.

Following the 17% surge in the stock market after the release of the earnings report, the company dropped back by 10% as it closed the week at around $25.20 on Friday. In terms of year to date gain, however, Pinterest has registered around 40% in 2020 so far. At $25.20, however, social media is still trading close to its IPO price of $24.40 in April 2019.

Following the quarterly performance results, Pinterest also announced its guidance for fiscal 2020 that also came out better than the analysts’ forecast. The social media now expects $1.52 billion in revenue in 2020 as compared to $1.50 billion anticipated by the experts.

Pinterest’s Redesigned Application Contributed To Better Than Expected Results

Pinterest had recently redesigned its application that was aimed at adding more convenience for the user in finding interesting ideas. With a boost to the overall performance, the redesigned application also helped improve the user experience. According to the CEO, the quarterly results suggest that the move worked impeccably for Pinterest.

In terms of MAUs (monthly active users) from across the globe, Pinterest claimed to have made a massive 26% growth in Q4 as compared to the same quarter last year. Excluding the U.S, the increase in the MAUs from the rest of the world reported an even sharper increase of 35% in the recent quarter. The United States of America alone contributed an 8% increase in Pinterest’s MAUs.

As many as six new markets were added by Pinterest in 2019 with the social media now planning to extend its expansion further in Europe.