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pinterest Shares plunged nearly 20% on Tuesday after the company reported third-quarter earnings below earnings per share and provided weak guidance.
Here’s how the company performed compared to LSEG’s analyst consensus forecasts:
Earnings per share: 38 cents adjusted, 42 cents expected; Revenue: $1.05 billion, $1.05 billion expected.
Pinterest’s third quarter revenue increased 17% year-over-year, and net income was $92.11 million, up 201% from $30.56 million in the year-ago period.
The company said it expects fourth-quarter sales to be between $1.31 billion and $1.34 billion. The midpoint of the revenue outlook, $1.325 billion, was lower than Wall Street’s expectations of $1.34 billion.
After the stock moved in after-hours trading on Tuesday, Pinterest erased its gains for the year.
Pinterest announced that it had 600 million monthly active users worldwide in the third quarter. That’s more than the 590 million people StreetAccount had predicted. Pinterest reported in August that it had 578 million monthly active users in the second quarter.
The company’s third-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA) were $306 million. This exceeded street estimates of $295 million.
Third-quarter sales in the U.S. and Canada were $786 million, below Street estimates of $799 million.
Pinterest’s global average revenue per user in the third quarter was $1.78, lower than StreetAccount’s estimate of $1.79.
“Our investments in AI and product innovation are paying off,” Pinterest CEO Bill Ready said in a statement. “We have become a leader in visual search, effectively turning our platform into an AI-powered shopping assistant for 600 million consumers.”
Julia Donnelly, Pinterest’s head of finance, said on an earnings call that the company had “room to rein in ad spending” in the U.S. and Canada region in the third quarter. Donnelly blamed the slowdown on unspecified “major U.S. retailers” that are dealing with tariff-related issues that are hurting profits.
“We expect these broad trends and market uncertainties to continue in the fourth quarter, with new tariffs impacting the home furnishings category,” Donnelly said of the company’s fourth-quarter outlook.
President Donald Trump announced in September that the White House would impose a 10% tariff on imported wood and lumber and a 25% tariff on kitchen cabinets, bathroom vanities and related furniture.
tech giant Meta, alphabet and Amazon announced its latest quarterly results last week. These reports show strong digital advertising sales amid heavy spending on artificial intelligence infrastructure.
Meta said its third-quarter sales, 98% of which were from online advertising, rose 26% year over year to $51.24 billion, marking the company’s largest year-over-year sales growth since the first quarter of 2024.
Revenue from Amazon’s online advertising division rose 24% year over year to $17.7 billion, a faster growth rate than the tech giant’s AWS cloud computing division.
Alphabet reported total ad revenue of $74.18 billion in the third quarter, up nearly 13% from $65.85 billion in the same period last year. The company’s YouTube division’s third-quarter online sales rose 15% to $10.26 billion.
reddit reported its third-quarter earnings last Thursday, announcing that revenue rose 68% year-over-year to $585 million, and global daily active uniques rose 19% year-over-year to 116 million, beating expectations of 114 million.
snap will release quarterly results on Wednesday.
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