Pinterest (PINS) This fall earnings

Pinterest shares slid in extended trading on Monday after the company reported sales that missed analysts’ expectations and issued a mild first-quarter guidance. The stock pared losses after previously falling as much as 12%.

That’s how the company did it.

  • revenue: $877 million vs $886.3 million expected, according to Refinitiv.
  • Merits: 29 cents per share versus 27 cents expected, according to Refinitiv.

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Pinterest said it expects first-quarter sales to grow in the “low single digits” year over year. Analysts had expected growth of 6.9% to $614.8 million.

The Company announced that its Chief Financial Officer and Business Unit President, Todd Morgenfeld, will be leaving the Company effective July 1, 2023.

Pinterest’s fourth-quarter revenue grew 4% year over year to $877 million, while total 2022 revenue rose 9% year over year to $2.8 billion.

A banner for online image sharing site Pinterest Inc. hangs on the New York Stock Exchange on the morning of Pinterest’s IPO on April 18, 2019.

Spencer Platt | Getty Images

Pinterest reported net income of $17 million for the fourth quarter but posted a net loss of $96 million for the full year.

The company announced that its global monthly active users grew 4% year over year to 450 million. Average revenue per user, or ARPU, for the US & Canada region increased 6% to $7.60 in the fourth quarter.

“While the entire industry faces headwinds, we are rapidly adapting to a changing macro environment and are committed to creating a more positive online experience for our users and advertisers,” said Bill Ready, CEO of Pinterest, in a Explanation.

The company also said its chief marketing and communications officer, Andréa Mallard, and chief revenue officer, Bill Watkins, will now report directly to Ready.

Pinterest’s fourth-quarter earnings come after many ad-supported companies reported tepid results.

Meta said last week that fourth-quarter revenue fell 4% year over year to $32.2 billion, while Alphabet’s Google ads business posted revenue of $59 billion in the fourth quarter, down 3.6% compared to the same quarter of the previous year. Additionally, revenue at Alphabet’s YouTube unit fell 8% year over year to $7.96 billion in the fourth quarter.

Snap said fourth-quarter revenue rose slightly year-over-year to $1.3 billion, missing analysts’ expectations of $1.31 billion.

Amazon’s digital advertising unit provided a bright spot in the fourth quarter, with revenue in that unit rising 19% to $11.6 billion.

Pinterest reportedly laid off around 150 employees last week, adding to a growing list of tech companies like Meta, Alphabet and Salesforce that have laid off employees in recent months.

In August, Elliott Management confirmed that it is Pinterest’s top investor and voiced its support for Ready, which formerly ran Google’s commerce business. Ready joined Pinterest in June 2022, replacing longtime CEO and co-founder Ben Silbermann.

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