Pinterest climbs 11% after beating revenue and earnings estimates, adding 100 million active users in 2020

Pinterest HQ. Smith Collection/Gado/Getty Images
  • Pinterest turned in revenues of $US706 million in the fourth quarter, beating analyst estimates by $US58 million.
  • International revenue growth and an increase in average revenue per user helped buoy results.
  • The company also gave strong guidance for Q1 2021, expecting revenue growth in the 70% range.
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Shares of Pinterest climbed as much as 11% on Friday after the company announced a strong quarter, beating analyst estimates for revenue and earnings.

San Francisco-based Pinterest saw revenues of $US706 million for the quarter that ended in December, up 76% year-over-year. And EPS came in at $US0.30 per share, compared to consensus analyst estimates of $US0.18.

Pinterest also managed to turn in a net income of $US207 million in the quarter, a huge jump from the $US35 million loss it posted in the year-ago period.

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The company has seen consistent tailwinds amid the pandemic as potential customers spend more time online, resulting in a booming share price over the last six months, up 136%, and a whole fleet of new customers.

“We welcomed over 100 million additional monthly active users to Pinterest in 2020, more than any other year in our history, and now we reach more than 450 million monthly active users around the world. I’m proud of our company and the inspiration we’ve been able to bring to so many lives during a trying year,” said Ben Silbermann, CEO, and co-founder, Pinterest.

International growth was a key factor in Pinterest’s rise during the fourth quarter. The company managed 145% year over year international revenue growth during the period, buoyed by higher average revenue per user (ARPU).

Pinterest saw ARPU hit $US1.57 compared to analyst estimates of $US1.44, per FactSet.

The company also gave strong guidance in its quarterly report, despite potential headwinds.

“We continue to navigate uncertainty given the ongoing COVID-19 pandemic and other factors. Our current expectation is that Q1 revenue will grow in the low-70% range year over year,” the company wrote in its earnings press release.

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Analysts had expected a strong quarter from Pinterest after Facebook and other social media companies revealed a benefit from COVID-19’s stay-at-home audience, but the company still outperformed.

Analysts are bullish on the social media company’s prospects going forward as well. Pinterest boasts 27 “buy” ratings, 17 “neutral” ratings, and zero “sell” ratings from analysts.