Pinterest shares plunged 19% in after-hours on Thursday after the social media company reported a fourth-quarter earnings miss and issued weak guidance.
Here’s how the company did, compared to analysts’ consensus estimates from LSEG:
- Earnings per share: 67 cents adjusted vs. 69 cents expected
- Revenue: $1.32 billion vs. $1.33 billion expected
Pinterest said it expects first-quarter sales to come in between $951 million to $971 million, trailing analyst estimates of $980 million.
This is the second quarter in a row in which Pinterest shed a fifth of its value after delivering Wall Street disappointing results.
The company’s fourth-quarter sales rose 14% year-to-year. Net income for the fourth quarter came in at $277 million, down 85% from a year prior, when net income was $1.85 billion and included a deferred tax benefit.
Fourth quarter sales in the U.S. and Canada region came in at $979 million, which was ahead of StreetAccount’s estimates of $973 million.
Pinterest recorded $541.5 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBIDTA. That figure fell short of the $550 million that analysts were projecting.
The company said that fourth-quarter global monthly active users jumped 12% year-over-year to 619 million. Wall Street was expecting that figure to be 613 million.
“Users are at all-time highs and overall engagement continues to grow,” Pinterest CEO Bill Ready said in a statement. “As we navigate a dynamic environment, we’re laser-focused on execution and transforming our sales and go-to-market efforts so monetization better reflects the valuable commercial intent we see on Pinterest.”
Pinterest revealed in January that it would lay off less than 15% of its workforce and reduce its office space in an effort to shift resources to technical teams prioritizing the development of “AI-powered products and capabilities.”
The company then fired staffers who built a tool to quantify the layoffs, and CEO Bill Ready admonished them during a companywide meeting, saying that “there’s a clear line between constructive debate and behavior that’s obstructionist,” CNBC reported.
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