Pinterest Inc. (PINS) reported strong fourth-quarter 2024 results, with its key metrics showing robust growth and momentum in its business. The company's shares soared nearly 21% in after-hours trading as investors cheered the solid performance and upbeat outlook for the first quarter of 2025.
Here are the highlights from Pinterest's Q4 2024 earnings report:
Revenue and Earnings: Pinterest's revenue jumped 17.6% year-over-year to $1.15 billion, surpassing analysts' expectations of $1.14 billion. The company's adjusted earnings per share of $0.56, however, missed estimates of $0.65 due to certain tax adjustments in the quarter.
User Growth: Pinterest's global monthly active users (MAUs) reached an all-time high of 553 million, up 11% year-over-year and exceeding analysts' forecast of 547.4 million. The largest user growth came from outside Europe and North America.
Engagement and Monetization: Pinterest's average revenue per user (ARPU) increased 6% globally to $2.12, with U.S. and Canada ARPU jumping 12% to $9.00. The company also reported its highest-ever weekly active to monthly active user ratio of 62% in 2024, indicating deeper engagement and more frequent usage.
Q1 2025 Guidance: For the current quarter, Pinterest expects revenue between $837 million and $852 million, surpassing analysts' estimates of $832.8 million. The company's adjusted EBITDA guidance for Q1 2025 is $155 million to $170 million.
Pinterest's strong performance was driven by robust holiday shopping activity, as users increasingly turned to the platform to find inspiration, shop, and take action. The company's focus on improving the actionability of its platform, investing in curation functionality, and leveraging AI to enhance recommendations and user experience paid off.
Pinterest CEO Bill Ready highlighted that the company's strategy is paying off, with the platform becoming more engaging and actionable for users and advertisers alike. The impressive results and upbeat guidance affirm Pinterest's ability to capitalize on the growing social media and e-commerce trends, despite increased competition.
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