U.S.-based social media platform Pinterest (PINS, Financial) reported robust holiday season revenue figures and provided an optimistic revenue forecast for the current quarter. This highlights the continued growth of its advertising business despite competition from larger rivals like Facebook and X. The platform's popularity among Gen-Z users worldwide is evident as their numbers continue to expand. Following this strong performance and outlook, Pinterest's stock price surged over 28% in after-hours trading.
Pinterest projects current period revenue between $837 million and $852 million, surpassing Wall Street's expectation of $835 million. Adjusted profit is expected to be between $155 million and $170 million, exceeding analysts' forecast of $141 million. The platform's app allows users to search for images and videos, saving them to virtual boards. The company also exceeded analysts' expectations for fourth-quarter revenue and overall user growth.
In Q4, Pinterest's total revenue rose 18% year-over-year to $1.15 billion, slightly above the anticipated $1.14 billion, marking its first time surpassing $1 billion in quarterly revenue. Adjusted earnings per share were $0.56, below the expected $0.65. Adjusted EBITDA under non-GAAP standards was approximately $471 million, a 28% increase year-over-year.
By the end of December, Pinterest reached a record 553 million monthly active users, surpassing the anticipated 547.4 million. Nearly 50% of its users are from Gen-Z, born after 1997. Pinterest has focused on "shoppable" content, allowing users to easily purchase products within the app, particularly during the lucrative holiday shopping season.
