Pinterest’s fourth-quarter adjusted earnings per share beat Wall Street analysts’ estimates, but revenue missed expectations and its outlook for the first quarter of fiscal 2023 was weak, causing its stock to plunge nearly 7 percent after hours.

Fourth quarter key results.

For the quarter that ended December 31, Pinterest reported a net income of $17.5 million and diluted earnings per share of $0.03, which was less than the prior year’s quarter, and net income of $175 million and diluted earnings per share of $0.25 for the fourth quarter of fiscal 2021.

Excluding certain one-time items (not in accordance with GAAP), Pinterest reported adjusted net income of $196 million for the fourth quarter, down 40 percent from $339 million in the prior year quarter, and adjusted diluted earnings per share of $0.29, compared to adjusted diluted earnings per share of $0.49 in the prior year quarter, a significant decrease from the prior-year quarter, but still better than analysts’ expectations. However, the results were still better than analysts’ expectations. According to Yahoo Finance, 20 analysts had previously expected Pinterest to report fourth-quarter adjusted earnings of $0.27 per share on average.

Pinterest’s fourth-quarter revenue was $877 million, up 4 percent from $847 million a year earlier, but the results failed to exceed analysts’ expectations. According to data provided by Yahoo Finance, 23 analysts had previously expected Pinterest’s fourth-quarter revenue to reach $886.27 million on average.

By region, Pinterest’s U.S. and Canada revenue was $722 million in the fourth quarter, up 5 percent from $689 million in the year-ago quarter; Europe revenue was $123 million, down 7 percent from $132 million in the year-ago quarter; and rest of the world revenue was $32 million, up 26 percent from $25 million in the year-ago quarter. This represents an increase of 26 percent.

Pinterest’s Adjusted EBITDA, or net earnings before interest, taxes, depreciation and amortization, was $196 million in the fourth quarter, compared to Adjusted EBITDA of $351 million in the prior year quarter, a 44 percent decrease, and Adjusted EBITDA margin was 22 percent, compared to 41 percent in the prior-year quarter.

Pinterest’s total costs and expenses for the fourth quarter were $871 million, compared to $667 million in the prior year period. Cost of revenue was $185 million, compared to $141 million in the prior year quarter; research and development expenses were $265 million, compared to $241 million in the prior year quarter; sales and marketing expenses were $317 million, compared to $191 million in the prior year quarter; and general and administrative expenses were $104 million, compared to $94.6 million in the prior year quarter.

In terms of operating metrics, Pinterest had 450 million monthly active users (MAUs) worldwide in the fourth quarter, up 4 percent from 431 million in the prior year period. The number of monthly active users in the U.S. and Canada was 95 million, flat compared to 95 million in the prior year quarter; in Europe, the number of monthly active users was 124 million, up 2 percent compared to 122 million in the prior year quarter; and in the rest of the world, the number of monthly active users was 231 million, up 8 percent compared to 215 million in the prior year quarter.

Pinterest’s global average revenue per user (ARPU) was $1.96 in the fourth quarter, up 1 percent from $1.93 in the prior year’s quarter. Revenue per user in the U.S. and Canada was $7.60, up 6 percent from $7.17 in the prior year quarter; revenue per user in Europe was $1.01, down 9 percent from $1.10 in the prior year quarter; and revenue per user in the rest of the world was $0.14, up 21 percent from $0.11 in the prior year quarter.

Full-year key results.

For the full fiscal year 2022, Pinterest’s revenue was $2.803 billion, up 9 percent from $2.578 billion in fiscal 2021, but this performance was slightly below analysts’ previous expectations. According to data provided by Yahoo Finance, 30 analysts previously expected Pinterest’s full-year revenue to reach $2.81 billion on average.

By region, Pinterest reported full-year revenue of $2.309 billion in the U.S. and Canada, up 8 percent from $2.133 billion in fiscal 2021; $398 million in Europe, up 4 percent from $382 million in fiscal 2021; and $95 million in the rest of the world, up 52 percent from $62 million in fiscal 2021. Revenue in the rest of the world was $95 million, up 52 percent from $62 million in fiscal 2021.

Pinterest reported a full-year net loss of $96 million, compared to net income of $316 million in fiscal 2021, representing a 130 percent decrease year-over-year, and a diluted loss per share of $0.14, compared to diluted earnings per share of $0.46 in fiscal 2021.

Excluding certain one-time items (not in accordance with GAAP), Pinterest reported full-year adjusted net income of $426 million, down 45 percent from $778 million in fiscal 2021, and adjusted earnings per share of $0.62, compared to adjusted diluted earnings per share of $1.13 in fiscal 2021, a significant year-over-year decline, but this performance However, the results still exceeded analysts’ previous expectations. According to Yahoo Finance, the 22 analysts previously expected Pinterest to earn an average of $0.61 per diluted share for the full year.

Pinterest’s full-year adjusted EBITDA was $442 million, down 46 percent from $814 million in fiscal 2021, and its adjusted EBITDA margin was 16 percent, compared to 32 percent in fiscal 2021.

Pinterest’s global average revenue per user for the full year was $6.36, up 10 percent from $5.79 in fiscal 2021. The average revenue per user in the U.S. and Canada was $24.38, up 16 percent from $21.07 in the prior year period; average revenue per user in Europe was $3.23, up 7 percent from $3.03 in the prior year period; and average revenue per user in the rest of the world was $0.43, up 49 percent from $0.29 in the prior year period.

Performance Outlook.
Pinterest said the company currently expects to achieve year-over-year revenue growth in the low end of the 1 percent to 9 percent range for the first quarter of fiscal 2023 and expects non-GAAP operating expenses to decline by a low double-digit percentage on a year-over-year basis.

According to Pinterest’s previously announced results, the company reported revenue of $575 million for the first quarter of fiscal 2022, while 17 analysts had previously expected, on average, $617.07 million in revenue for the first quarter of fiscal 2023, according to data provided by Yahoo Finance.

Stock price movement.

On the same day, Pinterest shares rose $0.41, or 1.49 percent, to close at $27.89 in regular trading on the Nasdaq. In subsequent after-hours trading through 5:12 p.m. EDT on June 6 (6:12 a.m. BST on July 7), Pinterest shares plunged $1.92, or 6.88 percent, to $25.97. Over the past 52 weeks, Pinterest has hit a high of $29.17 and a low of $16.14.

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Main achievement:
In the quarter that ended Sept. 30, Pinterest posted a net loss of $65.2 million, or $0.10 per diluted share, a performance that was nowhere near the same as a year earlier. In the third quarter of fiscal 2021, Pinterest’s net income was $94 million, or $0.14 per diluted share.

Excluding certain one-time items (not in accordance with GAAP), Pinterest’s third-quarter adjusted net income was $76.5 million, compared to adjusted net income of $191 million in the year-ago quarter, down 60 percent year-over-year. %; Adjusted earnings per diluted share were $0.11, compared to $0.28 in the year-ago quarter, a sharp decline from the same period last year, but still better than analysts’ expectations. According to data provided by the Yahoo Finance website, 21 analysts had expected Pinterest to report adjusted earnings of $0.06 per share in the third quarter.

Pinterest’s third-quarter revenue was $685 million, up 8% from $633 million in the same period a year earlier and also beating analyst expectations. According to data provided by the Yahoo Finance website, 26 analysts had expected Pinterest’s third-quarter revenue to reach $666.71 million on average.

By region, Pinterest’s third-quarter revenue in the U.S. and Canada was $575 million, up 9% from $526 million in the same period last year; European revenue was $86 million, down from $89 million in the same period last year 4%; Rest of the World revenue was $24 million, up 36% from $17 million in the year-ago quarter.

Non-GAAP adjusted EBITDA, or net income before interest, taxes, depreciation and amortization, was $77.3 million in the third quarter, compared to adjusted EBITDA of $201 million in the year-ago quarter U.S. dollar, down 62% year over year; adjusted EBITDA margin was 11%, compared to 32% a year earlier.

Pinterest reported an operating loss of $69.4 million in the third quarter, compared with an operating profit of $98.4 million a year earlier.

Pinterest’s total costs and expenses in the third quarter were $754 million, compared with $534 million in the same period last year. Of which, cost of revenue was $183 million, compared to $127 million in the same period last year; research and development expenses were $255 million, compared to $186 million in the same period last year; and sales and marketing expenses were $230 million, compared to $230 million General and administrative expenses were $86.8 million, compared with $65.7 million in the same period last year.

In terms of operational metrics, Pinterest’s global monthly active users (MAU) in the third quarter were 445 million, a slight increase from 444 million in the same period last year. Among them, the number of monthly active users in the United States and Canada was 95 million, a decrease of 2% compared with 98 million in the same period last year; the number of monthly active users in Europe was 120 million, an increase from 119 million in the same period last year 1%; the rest of the world had 230 million monthly active users, up 1% from 228 million a year earlier.

Pinterest’s global average revenue per user (ARPU) in the third quarter was $1.56, up 11% from $1.41 a year earlier. Among them, the average revenue per user in the United States and Canada was $6.13, an increase of 15% compared with $5.32 in the same period last year; the average revenue per user in Europe was $0.72, a decrease of 3% compared with $0.74 in the same period last year; Average revenue per user in other regions was $0.11, up 38% from $0.08 a year earlier.

Performance Outlook:
Pinterest said it now expects revenue to grow in the mid-1% to 9% range year-over-year in the fourth quarter of fiscal 2022. According to Pinterest’s previously announced financial report, the company’s revenue in the fourth quarter of fiscal 2021 was $847 million. According to data provided by the Yahoo Finance website, 26 analysts had expected Pinterest’s fourth-quarter revenue to reach $884.57 million on average.

Pinterest also said it expects sequential growth in the company’s non-GAAP operating expenses to be in the low end of the 10% to 19% range in the fourth quarter of fiscal 2022. For the full fiscal year 2022, the company expects year-over-year growth in non-GAAP operating expenses to be around 35%.

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