Pinterest stock plunges following weak Q4 revenue guidance
Pinterest reported third-quarter earnings on Thursday that beat on the top and bottom lines.
Pinterest shares plunged 15% on Thursday after the social media company provided soft guidance for its fourth-quarter revenue despite beating on the top and bottom lines with its third-quarter earnings.
Here's how the company performed, according to LSEG:
Revenue: $898 million vs. $896 million expected
Earnings per share: 40 cents adjusted vs. 34 cents expected
The company said fourth-quarter revenue will be between $1.125 billion and $1.145 billion. The midpoint of the fourth-quarter guidance, $1.135 billion, trailed analyst estimates of $1.143 billion.
Pinterest also said in a filing Thursday that its board authorized a $2 billion share buyback.
Sales in Pinterest's third quarter rose 18% from $763.2 million a year ago.
Pinterest said it had 537 million global monthly active users in the third quarter, topping analyst estimates of 532.6 million.
The company's net income grew a whopping 354% year over year to $30.56 million. Its total cost and expenses for the quarter were $904 million, up 17% compared with $768 million the previous year.
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