Pinterest Posts Its First Full-Year Profit on Sales of $2 Billion

Pinterest stock spiked in extended trading Thursday after its 2021 earnings results stressed the company’s first full-year of profit, as well as the first year to tick above $2 billion in annual revenue. Pinterest stock rose 28 percent in extended trading on a better than expected Q4. “We took important steps in 2021 with the launch of our foundational technology to deliver a video-first publishing platform,” Pinterest co-founder and CEO Ben Silbermann said, emphasizing that the company would continue to focus on the new initiatives that helped revenue grow 20 percent for Q4 and 52 percent for the year.

“As we look ahead to 2022, we plan to further invest in our business as we scale the distribution of Idea Pins through our creator-led content efforts and enhance our core Pinner experience and shopping,” Silbermann said in the earnings release.

Revenue in the December quarter was $847 million, while GAAP net income was $175 million. “For the full year, Pinterest reported net income of $316.4 million, or 46 cents a share, its first GAAP profit. It had revenue of $2.58 billion,” notes the release on Yahoo Finance.

“Pinterest said that its global monthly active users, a key metric for measuring the health of a social network, declined 6 percent year-over-year to 431 million. During the quarter, monthly active users declined 12 percent in the United States to 86 million. However, average revenue rose 23 percent in the quarter to $1.93 per global user,” CNBC observes.

Pinterest was rewarded as its share price recovered from a 10 percent decline as part of a social media sell-off after “Meta reported an outlook worse than expectations on Wednesday, and came up short on user numbers, prompting investors to sell off social media stocks,” CNBC said. But Pinterest shares “are down nearly 25 percent so far this year, compared with the S&P 500 Index, which has declined about 6 percent year to date,” writes MarketWatch, attributing the sag in part to news of executive departures.

On the earnings call, Silbermann said that some of the executives who left had been with the company a long time and the COVID-19 pandemic “has brought about a ‘reshuffling,’” MarketWatch reports.

The company did not give a specific first-quarter forecast, but MarketWatch couched CFO Todd Morgenfeld as “cautiously optimistic on the earnings call and said he expected first-quarter year-over-year revenue growth in the ‘high teens.’”

No Comments Yet

You can be the first to comment!

Sorry, comments for this entry are closed at this time.