Pinterest pops as stay-at-home projects fuel user, revenue growth
Pinterest shares are set to surge on Thursday
Gibbs Wealth Management President Erin Gibbs, Kadina Group President Gary B. Smith, Kingsview Wealth Management CIO Scott Martin and tech expert Lance Ulanoff break down Big Tech earnings, including Amazon, Google parent Alphabet, Twitter and Facebook.
Pinterest shares jumped after the company reported strong revenue and user growth fueled by stay-at-home projects.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PINS | PINTEREST INC. | 32.28 | +0.26 | +0.81% |
PINTEREST IS PROHIBITING CULTURALLY INAPPROPRIATE HALLOWEEN COSTUMES
Despite posting a third-quarter loss of $94.2 million, or 16 cents a share, the image-sharing company reported a 58% year-over-year revenue increase to $442.6 million compared to $280 million in 2019.
Pinterest reported a 46% year-over-year increase in its international monthly active users to 343 million compared to 235 million in 2019. Meanwhile, domestic monthly active users increased by 13% year-over-year to 98 million from 87 million a year ago.
The company cited broad-based strength driven by a recovery in advertiser demand from larger brands who paused or reduced spending in the second quarter to boycott social media as part of the #StopHateforProfit campaign. In addition, the company said the release of iOS 14 boosted user growth with approximately 4 million people using Pinterest “for inspiration for customized background filters.”
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While Pinterest is forecasting fourth-quarter revenue growth of about 60% year-over-year, the company warned that it continues to "navigate uncertainty" due to the coronavirus pandemic. It also expects fourth-quarter engagement to dip as people celebrate the holidays and during both the U.S. presidential election and its aftermath.
The company noted that it will continue to operate in a remote work environment while maintaining its long-term strategic investments and will continue to evaluate its spending as the pandemic evolves.
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