Pinterest’s fourth-quarter earnings report exceeded almost all of Wall Street’s expectations.
Social platform Pinterest released its fourth-quarter report last Thursday and the company shares rose for up to 17.1% in the after-hours trading. Based on the financial report, the company’s revenue grew to 46% in its y-o-y amounting to $400 million. Aside from that, Pinterest’s monthly active users also increased to 26% and it now has 335 million users globally. Pinterest’s trading increase has been attributed to Pinterest’s advertising additions to its platform.
The company’s report surpassed the expected results from WallStreet and other entities. For its earnings per share, Pinterest increased to 12 cents as opposed to the expected 8 cents forecasted by Refinitiv. The same is true with the revenue, which was expected to grow to $371 million but went even higher to $400 million. FactSet also forecasted for Pinterest to have an average revenue per user of $4.14 but the company reported a $1.22 instead.
Ben Silbermann, the company’s CEO, and co-founder said in their strong results for the fourth-quarter encouraged them more to keep pursuing goals on “delivering relevant content, ads and shopping experience for its users.”
Pinterest versus other social media platforms
Facebook, Snapchat, and other platforms have released their revenue reports for the past few days. Snapchat reported a 44% growth from its 2018 report and its revenue rose to $561 million. Although it’s a significant rise, it still fell behind the expected $563 million. The company also reported global daily active users of 218 million users in the fourth quarter. Facebook, on the other hand, reported a revenue of $21.1 billion, that’s a growth of 24.6% growth from the previous quarter. Facebook beat Wall Street’s estimate of $20.89%.
What’s in store for Pinterest?
Pinterest’s last quarter’s report was quite a blow to the company. The revenue fell and analysts’ expectations may have been lighter. However, Pinterest is able to turn it around. Through Pinterest’s Advertising options the platform has the chance to increase profits through even more avenues.
Pinterest has been busy improving its platform for the past year. Just recently, Pinterest added several new features that would help brands understand the consumers’ behaviors in the platform. Example of which is the Pinterest Trends Tool which shows the most search terms in the U.S. for the past 12 months. There’s also the Pinterest shop to improve users’ experience during the holiday season.
Marketers, advertisers, and brands are given much thought in the development of Pinterest as an advertising platform. This makes it a huge competition from other advertising platforms.