Pinterest's revenue forecast disappoints investors looking for holiday season ad boost
· CNA · Join:Pinterest's fourth-quarter revenue forecast failed to impress investors looking for a boost from the holiday shopping season, at a time when bigger online ad sellers largely outperformed, sending the company shares down 14 per cent in extended trading.
The company also announced a new stock buyback program of up to $2 billion and canceled the September 2023 program under which $500 million were available for repurchase.
Pinterest's results follow quarterly reports by digital ad bellwethers – including Google-parent Alphabet, Meta Platforms, Reddit and Snap – which posted upbeat third quarter revenue, helped by robust ad spending.
Pinterest released Performance+ suite in October to better target users by enhancing ad campaigns with new AI tools and automation features on the platform.
Pinterest forecast fourth-quarter revenue between $1.13 billion and $1.15 billion, the midpoint of which was in line with analysts' average estimates of $1.14 billion, according to data compiled by LSEG.
The company's revenue grew 18 per cent to $898.4 million in the reported quarter, compared with estimates of $896.4 million.
Adjusted profit per share for the quarter came in at 40 cents, compared with estimates of 34 cents.
Global monthly active users on the platform rose 11 per cent to 537 million in the July-to-September period, compared with estimates of 531.5 million.
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