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PINS Q3 Earnings Beat Estimates, Revenues Up Y/Y on Solid User Growth
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Pinterest, Inc. (PINS - Free Report) reported healthy third-quarter 2024 results, with the bottom and top lines surpassing the respective Zacks Consensus Estimate. The San Francisco-based Internet content provider reported revenue growth year over year, driven by strong user growth across all regions.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Management’s focus on improving shoppability and monetization potential across the platform and the incorporation of advanced AI-integrated tools have supported the top line. Despite solid growth in retail and various other end markets, weakness in the food and beverage sector remains a concern.
PINS’ Net Income
On a GAAP basis, the company reported a net income of $30.6 million or 4 cents per share compared with a net income of $6.7 million or a penny per share in the year-ago quarter.
Non-GAAP net income improved to $275 million or 40 cents per share from $193.3 million or 28 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 6 cents.
During the quarter, revenues rose to $898.4 million, up 18% from the prior-year quarter’s revenues of $763.2 million. The top line beat the Zacks Consensus Estimate by $1 million. Pinterest witnessed 11% year-over-year growth in global monthly active users (MAUs) to 537 million from the year-earlier quarter’s 482 million.
The introduction of AI recommendation models is enabling the company to enhance relevancy and personalization of the content, which in turn is driving more user engagement. Several lower funnel products, such as Mobile Deep Linking and Direct Links, are boosting customer conversion and driving return on investment for advertisers and retailers. Partnerships with third parties, including Amazon and Google, are enabling the company to monetize several unmonetized markets.
The United States and Canada generated $719 million in revenues, up 16% year over year. Solid momentum in retail and emerging verticals, including financial services, automobiles and technology, supported the net sales. Revenues from Europe totaled $137 million, up 20% from $114 million in the year-ago quarter. Healthy traction in retail ensured top-line growth in this region. Net sales from the Rest of World rose to $42 million from $31 million recorded in the prior-year quarter.
MAUs from the United States and Canada were 99 million, up 3% year over year. The Rest of World registered MAUs of 300 million, up 16% from 258 million in the year-earlier quarter. MAUs from Europe increased to 139 million from 128 million in the year-ago quarter.
In the September quarter, the global average revenues per user (ARPU) stood at $1.70 compared with the year-ago quarter’s figure of $1.61. ARPU in Europe improved 10% year over year to $1.00, while the United States and Canada rose 13% to $7.31. ARPU from the Rest of World increased 18% year over year to 14 cents.
PINS’ Other Details
Adjusted EBITDA was $242.1 million in the third quarter of 2024, up from the prior-year quarter’s tally of $184.7 million. Total costs and expenses were $904.3 million, up from $768.2 million in the year-ago quarter. On a GAAP basis, research and development expenses rose to $ 326.7 million from $264.7 million.
PINS’ Cash Flow & Liquidity
For the first nine months of 2024, the company generated $710.6 million of cash from operating activities compared with $354.7 million in the prior-year period. As of Sept. 30, 2024, Pinterest had cash and cash equivalents of $1.03 billion, with $154.4 million of operating lease liabilities.
PINS’ Outlook
For the fourth quarter of 2024, Pinterest expects revenues in the range of $1.125-$1.145 billion, indicating 15-17% year-over-year growth. Non-GAAP operating expenses are projected in the range of $495-510 million, implying 11-14% growth year over year.
Zacks Rank & Stocks to Consider
Pinterest currently carries a Zacks Rank #3 (Hold).
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Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank of 1 at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises.
UI’s excellent global business model, which is flexible and adaptable to evolving market changes, helps it overcome challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.
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PINS Q3 Earnings Beat Estimates, Revenues Up Y/Y on Solid User Growth
Pinterest, Inc. (PINS - Free Report) reported healthy third-quarter 2024 results, with the bottom and top lines surpassing the respective Zacks Consensus Estimate. The San Francisco-based Internet content provider reported revenue growth year over year, driven by strong user growth across all regions.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Management’s focus on improving shoppability and monetization potential across the platform and the incorporation of advanced AI-integrated tools have supported the top line. Despite solid growth in retail and various other end markets, weakness in the food and beverage sector remains a concern.
PINS’ Net Income
On a GAAP basis, the company reported a net income of $30.6 million or 4 cents per share compared with a net income of $6.7 million or a penny per share in the year-ago quarter.
Non-GAAP net income improved to $275 million or 40 cents per share from $193.3 million or 28 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 6 cents.
Pinterest, Inc. Price, Consensus and EPS Surprise
Pinterest, Inc. price-consensus-eps-surprise-chart | Pinterest, Inc. Quote
PINS’ Revenues
During the quarter, revenues rose to $898.4 million, up 18% from the prior-year quarter’s revenues of $763.2 million. The top line beat the Zacks Consensus Estimate by $1 million. Pinterest witnessed 11% year-over-year growth in global monthly active users (MAUs) to 537 million from the year-earlier quarter’s 482 million.
The introduction of AI recommendation models is enabling the company to enhance relevancy and personalization of the content, which in turn is driving more user engagement. Several lower funnel products, such as Mobile Deep Linking and Direct Links, are boosting customer conversion and driving return on investment for advertisers and retailers. Partnerships with third parties, including Amazon and Google, are enabling the company to monetize several unmonetized markets.
The United States and Canada generated $719 million in revenues, up 16% year over year. Solid momentum in retail and emerging verticals, including financial services, automobiles and technology, supported the net sales. Revenues from Europe totaled $137 million, up 20% from $114 million in the year-ago quarter. Healthy traction in retail ensured top-line growth in this region. Net sales from the Rest of World rose to $42 million from $31 million recorded in the prior-year quarter.
MAUs from the United States and Canada were 99 million, up 3% year over year. The Rest of World registered MAUs of 300 million, up 16% from 258 million in the year-earlier quarter. MAUs from Europe increased to 139 million from 128 million in the year-ago quarter.
In the September quarter, the global average revenues per user (ARPU) stood at $1.70 compared with the year-ago quarter’s figure of $1.61. ARPU in Europe improved 10% year over year to $1.00, while the United States and Canada rose 13% to $7.31. ARPU from the Rest of World increased 18% year over year to 14 cents.
PINS’ Other Details
Adjusted EBITDA was $242.1 million in the third quarter of 2024, up from the prior-year quarter’s tally of $184.7 million. Total costs and expenses were $904.3 million, up from $768.2 million in the year-ago quarter. On a GAAP basis, research and development expenses rose to $ 326.7 million from $264.7 million.
PINS’ Cash Flow & Liquidity
For the first nine months of 2024, the company generated $710.6 million of cash from operating activities compared with $354.7 million in the prior-year period. As of Sept. 30, 2024, Pinterest had cash and cash equivalents of $1.03 billion, with $154.4 million of operating lease liabilities.
PINS’ Outlook
For the fourth quarter of 2024, Pinterest expects revenues in the range of $1.125-$1.145 billion, indicating 15-17% year-over-year growth. Non-GAAP operating expenses are projected in the range of $495-510 million, implying 11-14% growth year over year.
Zacks Rank & Stocks to Consider
Pinterest currently carries a Zacks Rank #3 (Hold).
Arista Networks, Inc. (ANET - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 gigabit Ethernet switches and routers optimized for next-generation data center networks.
Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank of 1 at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises.
UI’s excellent global business model, which is flexible and adaptable to evolving market changes, helps it overcome challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.
WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.