© Reuters
Investing.com — Pinterest Inc (NYSE:) shares weakened in after-hours trading after it missed expectations for fourth-quarter revenue.
per share of 29 cents beat the expectation of 27 cents but revenue of $877 million was short of the $888M expected.
Shares of the social media site operator fell 14.3% in late trading. The stock is up 14.8% so far this year.
Revenue rose 4% in the fourth quarter from the prior year’s fourth quarter. For the year, Pinterest said revenue rose 9%, to $2.8 billion.
The company also announced a plan to buy back $500M of its shares over 12 months.
Investors are likely focusing on slowing revenue growth and lower-than-expected monthly active users. Pinterest said monthly active users rose 4% year over year, to 450M, but analysts had been looking for a slightly higher number. Pinterest is forecasting first quarter sales to rise in the low single-digit from one year ago, while analysts were also expecting higher.
CEO Bill Ready said the company is “staying focused on growing monetization per user, integrating shopping throughout the core user experience, and increasingly driving operational rigor. While the industry as a whole is facing headwinds, we are adapting quickly to a changing macro environment and are committed to creating a more positive online experience for our users and advertisers.”
Pinterest also announced that CFO Todd Morgenfeld will leave to pursue new career opportunities on July 1, 2023.
Be the first to comment