Pinterest (NYSE:PINS) Announces Quarterly Earnings Results

Key Points

• Pinterest missed third-quarter expectations: Adjusted EPS was $0.46 versus the $0.49 consensus, while revenue of $1.17 billion rose 11.9% year over year but fell short of the $1.21 billion estimate.
• Near-term growth outlook weakened: Pinterest forecast fourth-quarter revenue of $1.425 billion to $1.475 billion, citing continued international pressure from European regulatory changes and weaker cross-border spending.
• User engagement and monetization remained strong: Monthly active users reached a record 661 million, up 10%, while adjusted EBITDA was $339 million. The company is expanding AI-powered advertising tools and programmatic partnerships, though its shares fell about 4.8% after the results.

Pinterest (NYSE:PINS - Get Free Report) posted its earnings results on Thursday. The company reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.03), FiscalAI reports. Pinterest had a net margin of 5.46% and a return on equity of 7.49%. The company had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter in the prior year, the company posted $0.38 EPS. Pinterest's revenue was up 11.9% on a year-over-year basis.

Here are the key takeaways from Pinterest's conference call:

• Q3 revenue missed expectations, coming in at $1.174 billion, up 12% year over year. European de minimis regulatory changes caused cross-border sellers to pull back more than anticipated, while international go-to-market restructuring added pressure.
• Pinterest expects continued near-term pressure in international markets, with Q4 revenue guidance of $1.425 billion to $1.475 billion, representing only 8% to 12% growth. Management does not expect cross-border spending to recover during the holiday period.
• User momentum remained strong, with global MAUs reaching a record 661 million, up 10%, and engagement in UCAN deepening faster than user growth. UCAN revenue grew 14% in Q3 and 15% year to date, demonstrating progress in Pinterest’s performance-advertising strategy.
• Pinterest is expanding AI-driven monetization through Pinterest Assistant, Visual Search Ads, improved bidding, and programmatic partnerships. Approximately 80% of Pinterest Assistant searches are commercial, while an early advertiser test showed a 77% increase in new-customer return on ad spend using Pinterest’s measurement integration.
• Q3 adjusted EBITDA was $339 million, with a 29% margin, and trailing 12-month free cash flow reached nearly $1.26 billion. However, Pinterest expects increased infrastructure and GPU spending in Q4 while maintaining its full-year adjusted EBITDA margin target of approximately 30%.

Pinterest Trading Down 4.8%

PINS stock traded down $1.00 during mid-day trading on Thursday, reaching $19.92. The company had a trading volume of 45,160,171 shares, compared to its average volume of 11,619,233. The company has a debt-to-equity ratio of 0.34, a current ratio of 3.81 and a quick ratio of 3.81. The company has a market capitalization of $11.16 billion, a PE ratio of 53.64, a price-to-earnings-growth ratio of 1.49 and a beta of 0.90. The firm has a 50 day moving average of $20.71 and a 200 day moving average of $20.83. Pinterest has a 12 month low of $13.84 and a 12 month high of $34.12.

Insider Activity at Pinterest

In related news, CFO Julia Donnelly sold 29,548 shares of the stock in a transaction that occurred on Thursday, September 24th. The stock was sold at an average price of $18.61, for a total value of $549,888.28. Following the transaction, the chief financial officer owned 751,921 shares of the company's stock, valued at $13,993,249.81. This represents a 3.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Claude Leonard Brown sold 12,240 shares of the firm's stock in a transaction on Monday, October 5th. The stock was sold at an average price of $20.00, for a total value of $244,800.00. Following the transaction, the insider owned 1,130,768 shares in the company, valued at $22,615,360. The trade was a 1.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 692,877 shares of company stock worth $14,733,501. Insiders own 8.09% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on PINS shares. Royal Bank Of Canada increased their target price on shares of Pinterest from $23.00 to $25.00 and gave the stock a "sector perform" rating in a report on Wednesday, August 5th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $30.00 price target on shares of Pinterest in a report on Wednesday, August 5th. DA Davidson upped their price target on shares of Pinterest from $26.00 to $27.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. KeyCorp dropped their price target on shares of Pinterest from $30.00 to $28.00 and set an "overweight" rating for the company in a research report on Wednesday. Finally, Citigroup increased their price objective on shares of Pinterest from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eighteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $27.67.

Trending Headlines about Pinterest

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Global monthly active users increased 10% year over year to a record 661 million, while third-quarter revenue rose 11.9% to $1.17 billion. Adjusted EBITDA reached $339 million, operating cash flow was $316 million and free cash flow was $300 million. Pinterest third-quarter results
• Positive Sentiment: Pinterest expanded programmatic advertising deals worldwide, allowing large advertisers to purchase display and video inventory through existing demand-side and supply-side platforms. The move could improve advertiser access and support monetization over time. Pinterest programmatic advertising expansion
• Neutral Sentiment: Some analysts remain constructive: KeyCorp maintained an “overweight” rating despite lowering its price target from $30 to $28. However, analyst targets may not offset concerns about the latest earnings miss. KeyCorp Pinterest price target
• Negative Sentiment: Third-quarter revenue of $1.17 billion missed estimates near $1.21 billion, while non-GAAP earnings of $0.46 per share came in below the $0.49 consensus. GAAP diluted EPS was reported at $0.04, and operating profit and net income declined sharply year over year. Pinterest third-quarter earnings miss
• Negative Sentiment: Fourth-quarter revenue guidance of approximately $1.45 billion was about 4.7% below analysts’ expectations, reinforcing fears that Pinterest’s revenue growth is slowing. This weaker outlook was the primary catalyst for the stock’s decline. Pinterest outlook and slowing revenue growth
• Negative Sentiment: Recent insider activity shows substantial selling and no reported insider purchases over the past six months, a potential negative signal for investor sentiment.

About Pinterest

Pinterest, Inc NYSE: PINS operates a visual discovery platform that helps people find ideas and inspiration for activities such as home improvement, cooking, fashion, travel and event planning. Users can discover, save and organize images and videos—known as Pins—on personalized boards and explore recommendations based on their interests.

The company also provides tools for businesses and creators to showcase products and content on the platform. Its advertising business includes promoted Pins and other advertising formats designed to help marketers reach users while they are discovering ideas, researching products and planning purchases.

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