Pinterest posts first full-year profit and hits over $2 billion in sales in 2021, sending shares soaring
Shares of Pinterest Inc. surged Thursday in extended trading after announcing a few firsts: full-year profit and more than $2 billion in annual revenue.
Pinterest PINS,
shares rose more than 28% after hours on Thursday, after falling 10% in the regular session to close at $24.49.
Chief Executive Ben Silbermann said the company would double down on new initiatives, which helped its fourth-quarter revenue grow 20% year-over-year and 52% year-over-year. previous year compared to the previous year.
“We plan to invest more in our business as we expand distribution of Idea Pins through our creator-led content efforts and improve our core Pinner experience and purchases,” he said. said in a statement.
Despite the milestones, the online bulletin board company said its global monthly active users in the fourth quarter fell 6% year-over-year to 431 million, below analysts’ 446 million expected. There was a 12% drop in US users, to 86 million, and a 4% drop in international users, to 346 million. Pinterest attributed the declines to declining traffic from search and the continued effects of the declining coronavirus pandemic.
Fourth quarter results, however, exceeded expectations. Revenue reached $846.7 million, compared to $705.6 million in the prior year quarter. Net income for the fourth quarter was $174.7 million, or 25 cents per share, compared to $207.8 million, or 43 cents per share, for the same period last year. Adjusted for stock-based compensation and other costs, earnings were 49 cents per share.
Analysts polled by FactSet had forecast earnings of 45 cents a share on revenue of $827.5 million.
For the full year, Pinterest reported net income of $316.4 million, or 46 cents per share, on revenue of $2.58 billion. Adjusted earnings were $1.13 per share, beating analysts’ expectations of $1.10 per share on revenue of $2.56 billion.
The company did not give a specific guidance for the first quarter, but Chief Financial Officer Todd Morgenfeld said on the earnings call that he expects revenue growth in the first quarter of a year. on the other among “high-level teenagers”.
Shares of Pinterest are down nearly 25% so far this year, while the S&P 500 SPX Index,
down about 6% since the start of the year.
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