Pinterest shares surged up to 20% after the company delivered stronger-than-expected fourth-quarter earnings, showcasing impressive revenue growth and a surge in user engagement.
Beating Wall Street’s Expectations
The social media platform reported Q4 revenue of $1.15 billion, edging past analysts’ forecasts of $1.14 billion. Adjusted EBITDA came in at $470.9 million, surpassing the $444.8 million expected. Meanwhile, Pinterest recorded a $1.6 billion deferred tax benefit, bringing net income for the quarter to $1.85 billion.
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The company’s adjusted EBITDA margin hit 41%, exceeding Wall Street’s 39% projection, reflecting improved profitability. Looking ahead, Pinterest forecasts Q1 revenue between $837 million and $852 million, with the midpoint above analysts’ expectations of $833 million.
User Growth And Engagement On The Rise
Pinterest’s global monthly active users (MAUs) grew 11% year over year to 553 million, exceeding Wall Street’s estimate of 547.4 million. That represents a nearly 3% increase from the previous quarter’s 537 million. The platform’s global average revenue per user (ARPU) reached $2.12, slightly ahead of projections at $2.09.
CEO Bill Ready attributed the strong performance to the company’s evolving strategy. “People are coming to Pinterest more often, the platform has never been more actionable, and our lower funnel focus is driving results for users and advertisers,” he said.
Social Media Stocks On The Rise
Pinterest’s rally follows a broader trend in the social media sector. Snap shares jumped earlier this week after posting strong Q4 earnings, while Meta also beat expectations on both revenue and profit. Meanwhile, Reddit is set to report its earnings next Wednesday, adding to the sector’s earnings momentum.
With its robust growth in both revenue and user engagement, Pinterest is proving its ability to drive meaningful results—both for its users and its investors.
