Pinterest revenue jumps thanks to strong holiday season
Pinterest Inc. reported quarterly sales that topped analysts’ estimates on a holiday shopping season that started earlier than expected and drove advertisers online due to the coronavirus. Shares gained about 8% in extended trading after the results were announced.
Fourth-quarter revenue jumped 76% to $706 million, the San Francisco-based digital scrapbooking and search company said Thursday in a statement. That was better than analysts’ average projection of $646 million, according to data compiled by Bloomberg.
While the Covid-19 pandemic continues to force Pinterest to “navigate uncertainty,” the company estimated revenue will increase in the “low-70% range” in the period ending in March. That would top analysts’ projections of about a 60% revenue gain. Pinterest said it would provide further details on its outlook during a conference call to discuss the results.
Pinterest has seen its advertising business grow steadily in recent months as advertisers turned to the internet due to the pandemic. The company said it experienced good turnout from small- and medium-sized businesses in the fourth quarter, including in categories like consumer-packaged goods and retail.
The company said it has 459 million monthly users, up 37% from a year earlier. Analysts, on average, estimated about 448 million users.
Profit, excluding some items, was 43 cents a share, topping the average estimate of 33 cents.
Pinterest shares reached a high of $88.38 in extended trading after closing at $77.84 in New York. The stock has gained about 18% this year after more than tripling in 2020.