Pinterest (PINS) reported revenue of $1.15 billion for the quarter ended December 2024, reflecting a 17.6% increase year-over-year. However, while revenue exceeded analyst expectations, earnings per share (EPS) fell short of estimates.
Key Financial Highlights
- Revenue: $1.15 billion (vs. $1.14 billion expected) — a +1.37% surprise
- EPS: $0.56 (vs. $0.63 expected) — a -11.11% miss
Despite the earnings miss, revenue growth remains strong, indicating increased user engagement and higher monetization across global markets.
User Growth and Engagement
Pinterest’s Monthly Active Users (MAUs) showed mixed results:
- Global MAUs: 553 million (vs. 549 million expected)
- U.S. & Canada MAUs: 101 million (vs. 100 million expected)
- Europe MAUs: 145 million (vs. 142 million expected)
- International MAUs: 307 million (vs. 308 million expected)
Revenue Per User (ARPU) Exceeds Expectations
Pinterest continued to improve its ability to monetize its user base, with Average Revenue Per User (ARPU) surpassing estimates:
- Global ARPU: $2.12 (vs. $2.08 expected)
- U.S. & Canada ARPU: $9.00 (vs. $8.97 expected)
- Europe ARPU: $1.38 (vs. $1.34 expected)
- Rest of World ARPU: $0.19 (vs. $0.18 expected)
Geographic Revenue Breakdown
- U.S. & Canada: $900 million (+15.5% YoY, vs. $892.98 million expected)
- Europe: $196 million (+21% YoY, vs. $190.28 million expected)
- Rest of World: $58 million (+41.5% YoY, vs. $53.89 million expected)
Stock Performance and Outlook
Shares of Pinterest have climbed 7.9% over the past month, outperforming the Zacks S&P 500 composite’s +2.1% gain.
The stock currently holds a Zacks Rank #3 (Hold), suggesting it may trade in line with the broader market in the near term. While the revenue beat is encouraging, investors may remain cautious about future earnings performance.
Conclusion
Pinterest delivered solid revenue growth and strong user engagement, with key ARPU and MAU metrics exceeding expectations. However, the EPS miss raises questions about profitability and cost management. Going forward, investors will be watching for continued improvements in monetization and operational efficiency.