Pinterest has seen a pretty optimistic year. After reporting its Q4 2021 earnings, its stock rose by over 25% during extended trading.
With that being saaid, Pinterest is sharing that the first quarter of this year would grow "in the high teens" every year.
Pinterest Outperforms Wall Street Expectations
Analysts have shared their expectations regarding Pinterest, which the company later on confirmed. These expectations arein regards to the growth of revenue, which is said to be "in the high teens" annually.
According to the story by CNBC, the stock of Pinterest rose by more than 28% in extended trading after the popular social media company officially reported their Q4 earnings and sales. Its earnings and sales are said to have beat the expectations of Wall Street.
Pinterest Earnings Per Share Above Expectations
The publication compared Pinterest's actual performance to Refinitiv consensus estimates. When it came to EPS or earnings per share, Pinterest had a $0.49 adjusted compared to the expected $0.45.
When it came to revenue, Pinterest was able to rake in $847 million in comparison to the expected $827 million. This has boosted the company up by 20% year-over-year.
Pinterest also revealed that the company's Q1 revenue would increase "in the high teens" annually, which is in line with the expectations of analysts at an 18% year-over-year increase.
Pinterest Saw a Decline in Users Year-Over-Year
Despite initial expectations at just 18%, Pinterest was able to hit a 20% year-over-year increase. Pinterest also revealed that the company's global monthly active users have declined by a whopping 6% year-over-year to just 431 million.
Pinterest uses its global monthly active users as a "key metric for measuring the health of a social network." During the quarter, the number of monthly active users Pinterest had in the United States declined by 12% to just 86 million.
Pinterest Saw Profits Despite a Decline in Number of Users
Despite a decline in users, Pinterest was still able to make profits with its average revenue rising by 23% "in the quarter to $1.93 per global user." Before the report, however, it should be noted that the stock of Pinterest was not met with that much optimism.
In fact, Pinterest's stock had dropped by a whopping 10% after its competitor, Meta, revealed an outlook that was worse than analysts were expecting. Other reasons that could have affected the stock price of Pinterest during that time was the company coming up short on user numbers.
Investors Sold off Pinterest Stock Not Knowing Company Actually Did Well
Investors were prompted to sell off social media stocks due to Meta's performance and the fact that Pinterest's overall user count showed a drop in numbers. Despite the 10% drop, however, Pinterest was able to not only recover the losses but also had a spike in price.
The gains happened after the market closed on its earnings report as well as after Snap's bullish report, which fueled more buyers and the price to go up further.
Related Article: Meta's $10 Billion Loss in 2021 Shows Facebook Spending Massive Amounts to Look for Next Stage of Growth
This article is owned by Tech Times
Written by Urian B.
