Pinterest Inc. ended a year in 2020, adding a record of more than 100 million users for that year and a 76% year-over-year increase in fourth-quarter revenue based on retail outlets, the company said. Thursday.
Pinterest PINs,
shares rose sharply to 10% after hours, after rising 0.9% in the regular session to close at $ 77.85.
The online billboard company, which said its monthly active users worldwide rose 37 percent year-over-year to $ 459 million, reported fourth-quarter net income of $ 207.8 million, or 30 cents. per share, compared to a loss of $ 35.7 million or 6 cents. a share, from a year ago. Adjusted earnings were 43 cents per share, adjusted for share compensation and more. Revenue rose to $ 705.6 million from $ 399.9 million last quarter. Analysts surveyed by FactSet forecast earnings of 34 cents per share on revenue of $ 645.7 million.
In the company’s press release, CFO Todd Morgenfeld attributed a “remarkable year of growth” to “continuous product innovation, execution and an earlier and longer holiday season”.
Pinterest made more needles affordable and launched new formats, such as videos, while trying to make its platform more engaging, and CEO Ben Silbermann promised more efforts in these areas.
In addition to investing in automated advertising tools, he said the company is planning new technologies and products “to improve the way people explore and find the products they love with tools … [to] view and plan, ”citing a tool that allows users to try eyeshadow in the Pinterest app, for example.
For the full year, the company had a loss of 22 cents per share from revenue of $ 1.69 billion. Analysts had forecast a loss of 35 cents per share, with revenues of $ 1.6 billion.
Regarding the San Francisco company’s earnings call, Morgenfeld said he expects first-quarter revenue to grow by about 70 percent year-over-year, but said he will be “keeping an eye on the impact of COVID on commitment ”, which could be adversely affected if the restrictions are eased.
Another thing the company is pursuing, according to Morgenfeld, is confidentiality and the regulatory environment surrounding the issue. He mentioned that a change in the Apple operating system update, which will allow users to drop some targeted ads, could affect Pinterest. (Facebook and Apple are involved in a war of words about the upcoming change.)
Regarding the record annual growth in users, Silbermann said in the appeal that he was helped by an increase in Gen Z users. He said the next wave of growth could come from international markets, which account for 17% of total revenue. : “We are still relatively under-penetrated there.”
Pinterest shares have risen 17% so far (and have risen 245% in the past 52 weeks) compared to a 2% increase in the S&P 500 SPX,
so far this year.