Pinterest CEO Bill Ready rang the opening bell of the New York Stock Exchange on May 15, 2024.
Brendan McDermid | Reuters
interest Shares plunged 15% on Thursday after the social media company provided soft guidance for its fourth-quarter revenue despite third-quarter profit exceeding both the top and bottom lines.
According to LSEG, the company performed as follows:
- income: $898 million vs. $896 million expected
- Earnings per share: Adjusted 40 cents, expected 34 cents
The company said fourth-quarter revenue will be between $1.125 billion and $1.145 billion. The midpoint of fourth-quarter guidance was $1.135 billion, below analysts’ expectations of $1.143 billion.
Pinterest CFO Julia Donnelly told analysts on an earnings call that ongoing weakness Advertisements from food and beverage advertisers, which are part of the broader consumer packaged goods market, have had a negative impact on social media companies’ overall sales. This is where the plunge comes from department That could continue into Season 4, she said.
Pinterest also stated in an article Archive On Thursday, its board authorized a $2 billion stock buyback.
Pinterest third-quarter sales grew 18% from $763.2 million a year ago.
Pinterest said it had 537 million global monthly active users in the third quarter, exceeding analysts’ expectations of 532.6 million.
The company’s net profit increased 354% year-on-year to $30.56 million. Total costs and expenses for the quarter were $904 million, an increase of 17% from $768 million in the prior year.
Donnelly attributed the increase in Pinterest spending to investments in research and development and hiring employees with expertise in artificial intelligence.
Pinterest’s latest quarterly earnings follow recent US presidential election Earlier this week, other technology companies with online advertising businesses also released multiple earnings reports.
last week, Amazon say it advertising business In the third quarter, it increased 19% year-on-year to US$14.3 billion. He Yuan explain Third-quarter sales increased 19% year-over-year to $40.59 billion. However, Meta shares fell slightly as user numbers were weaker than expected and it warned that infrastructure spending would accelerate significantly in 2025.
