Pinterest Inc. stop roaring 2020 by adding an additional 100 million users for the year and posting 76% year-over-year growth in fourth-quarter revenue on holiday sales strength, the company said Thursday .
PINS Pinterest,
Shares rose sharply, as high as 10% after hours, after rising 0.9% in the regular session to close at $ 77.85.
The online-pin company, which said its global monthly active users were up 37% year-over-year to 459 million, reported net fourth-quarter revenue of $ 207.8 million, or 30 cents in a share, compared to a loss of $ 35.7 million, or 6 cents a share, in the previous year. Improved earnings were 43 cents an allowance, adjusted for stock-based compensation and more. Revenue rose to $ 705.6 million from $ 399.9 million in the fourth year ago. Analysts conducted by FactSet had forecast earnings of 34 cents a share on revenue of $ 645.7 million.
In a company press release, Chief Financial Officer Todd Morgenfeld described the ongoing product innovation, performance and holiday season earlier and longer as “a remarkable year of growth”. ”
Pinterest made more “shop” pins and released new formats as a video while trying to make its platform more interesting, and CEO Ben Silbermann promised more efforts in those areas.
In addition to investing in automated advertising tools, he said the company is designing new technology and products “to improve the way people analyze and find the best products. with tools… [to] vision and design, ”refers to a tool that allows users to experiment with eye-tracking within the Pinterest app, for example.
For the full year, the company had a loss of 22 cents on revenue of $ 1.69 billion. Analysts had forecast a loss of 35 cents a share on $ 1.6 billion in revenue.
On the San Francisco-based company’s employment call, Morgenfeld said it expects first-quarter revenue to grow by about 70% year-over-year, but said it would “keep an eye on it”. on the effect of COVID on communication, ”which may be adversely affected if restrictions are easy.
Another thing the company is looking at, according to Morgenfeld, is privacy and the regulatory environment surrounding the issue. He said a change in Apple ‘s operating system update that allows users to opt out of certain targeted advertising could affect Pinterest. (Facebook and Apple are engaged in a war of words over the coming change.)
Regarding the highest annual growth in consumers, Silbermann said on the call that it was helped by an increase in Gen Z users. He said the next wave of growth could come from international markets. , which represents 17% of total revenue: “We are still relatively low there. ”
Shares of Pinterest have risen 17% so far (and are up 245% in the last 52 weeks), compared to a 2% increase in the S&P 500 SPX index,
so far this year.