Core Viewpoint - Pinterest's stock has surged following strong quarterly results and an optimistic forecast, reversing a trend of weak performance in previous quarters [1] Financial Performance - Pinterest's Q4 revenue increased by 18% year over year to $1.15 billion, surpassing the consensus estimate of $1.14 billion and exceeding its own guidance range [2] - Revenue from the U.S. and Canada rose 16% to $900 million, European revenue increased by 21% to $196 million, and revenue from the rest of the world (ROW) soared 44% to $58 million [2] - Adjusted EBITDA surged 28% to $470.9 million, while adjusted EPS rose by 6% to $0.56 [5] User Growth - Monthly active users (MAUs) grew by 11% to 553 million, with ROW users increasing by 15% to 307 million [3] - U.S. and Canada MAUs rose by 4% to 101 million, and European users climbed by 7% to 145 million [3] Monetization Metrics - Average revenue per user (ARPU) increased by 6% to $2.12, with U.S. and Canada ARPU growing by 12% to $9, European ARPU also up by 12% to $1.38, and ROW ARPU soaring 24% to $0.19 [4] Future Outlook - For Q1, Pinterest projects revenue between $837 million and $852 million, indicating a year-over-year growth of 13% to 15% [5] - The Performance+ platform has shown early success, with advertisers reporting a 20% improvement in cost per acquisition [6] Technological Advancements - Pinterest is leveraging AI tools to optimize ad loads and improve ad relevancy, with approximately 15% of its current code generated by AI [7] Competitive Positioning - Pinterest's stock trades at a forward P/E ratio of about 21.5 based on 2025 estimates, which is lower than competitors like Meta Platforms and Snap [10] - The company has significant opportunities to enhance monetization, particularly in international markets, and is focused on improving ARPU in these regions [9][11]

Group 1 - Pinterest's share price increased nearly 20% following the release of its Q4 earnings, indicating a strong market reaction despite the results being driven more by bearish sentiment than by robust earnings [1] - The company reported solid earnings, but the significant price surge suggests that investor sentiment may have been overly pessimistic prior to the earnings announcement [1] Group 2 - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations caused by misunderstandings of long-term business prospects, aiming for excess risk-adjusted returns [2] - The investment strategy emphasizes uncovering unique insights through a thorough analysis of company and industry fundamentals, particularly in smaller cap stocks and markets with less obvious competitive advantages [2] - The firm anticipates that an aging population and low growth will create new investment opportunities, while some industries may face stagnation or decline, potentially improving business performance due to reduced competition [2] - There is a trend towards asset-light businesses, leading to a decline in infrastructure investment needs, which is contributing to rising asset prices and compressed risk premiums over time [2]

Core Insights - The article discusses the investment position of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Pinterest [1] Company Insights - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has a disclosure policy regarding its investment positions [1] - The Motley Fool may compensate affiliates for promoting its services, which could influence opinions [1]

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Have you looked into how Pinterest (PINS) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this digital pinboard and shopping tool company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and traject ...

Core Insights - Pinterest reported Q4 revenue of $1.15 billion, slightly above consensus estimates of $1.14 billion, but earnings per share of $0.56 missed the expected $0.64 [1][2] - The stock surged 19% following the earnings report due to strong user growth and an optimistic outlook, despite underperforming the S&P 500 year-to-date [1][4] - The company experienced an 18% year-over-year revenue growth, with a notable increase in monthly active users (MAUs) by 11% to 553 million and average revenue per user (ARPU) rising 6% to $2.12 [2] Financial Performance - Pinterest's adjusted EBITDA margin expanded by 300 basis points to 41% in Q4, indicating improved profitability [2] - The company guided for Q1 sales of $845 million and adjusted EBITDA of $163 million, surpassing consensus estimates of $834 million and $139 million, respectively [3] Stock Performance and Valuation - Despite a mixed Q4 performance, Pinterest's stock has shown upward momentum, driven by strong user engagement and a positive outlook [4] - The stock is currently trading at 7.7 times trailing revenues, slightly above its historical average price-to-sales ratio of 7.3 [6] - There is potential for further upside in Pinterest's stock, supported by robust user growth, increasing ARPU, and margin expansion, justifying a premium to its historical valuation [6]

Pinterest, Inc. (NYSE: PINS ) stock was soaring on Friday after releasing strong earnings results. It appears that sentiment may have been low heading into the report as investors may have lost faith in the growth story. PINS continues toJulian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to ad ...

Core Viewpoint - Pinterest reported fourth-quarter revenue of $1.15 billion, exceeding estimates of $1.14 billion, but earnings per share of 56 cents fell short of the expected 65 cents. The company anticipates first-quarter revenue between $837 million and $852 million [1]. Group 1: Financial Performance - Fourth-quarter revenue was $1.15 billion, beating estimates of $1.14 billion [1]. - Fourth-quarter earnings per share were 56 cents, missing analyst estimates of 65 cents [1]. - For 2025, revenue estimates were raised by 2% to $4.2 billion, and EBITDA was increased by 8% to $1.3 billion [2]. - For 2026, revenue estimates were increased by 4% to $4.9 billion, with EBITDA raised by 9% to $1.6 billion [3]. Group 2: Analyst Insights - BofA Securities noted strong execution with AI models, leading to a record WAU/MAU ratio of 62% and a 90% increase in ad clicks [1]. - JP Morgan highlighted that Pinterest is on track to meet its 30-34% EBITDA margin target over the next 3-5 years [4]. - Goldman Sachs suggested that Pinterest's positive outlook on the ad environment should alleviate short-term growth concerns [5]. - Guggenheim pointed out that Pinterest is investing more in AI to enhance user experience and advertising tools [6]. Group 3: Stock Ratings and Price Forecasts - BofA Securities reiterated a Buy rating, raising the price forecast to $46 from $39 [7]. - JP Morgan maintained a Neutral rating, increasing the price forecast to $42 from $35 [7]. - Goldman Sachs reiterated a Buy rating, raising the price forecast to $47 from $42 [7]. - Guggenheim maintained a Neutral rating, increasing the price forecast to $39 from $33 [7]. Group 4: Market Performance - Pinterest shares were trading higher by 17.1% to $39.32 [8].

Core Insights - Pinterest, Inc. reported mixed fourth-quarter 2024 results, with adjusted earnings missing estimates while revenues exceeded expectations [1] Financial Performance - GAAP net income for Q4 2024 was $1.85 billion or $2.68 per share, a significant increase from $201.2 million or 29 cents per share in the prior-year quarter, driven by top-line growth and an income tax benefit [3] - Non-GAAP net income for Q4 2024 was $385.6 million or 56 cents per share, up from $370.7 million or 53 cents per share in the year-ago quarter, but missed the Zacks Consensus Estimate by 7 cents [3] - For the full year 2024, GAAP net income was $1.86 billion or $2.67 per share, compared to a loss of $35.6 million or a loss of 5 cents per share in 2023 [4] - Non-GAAP net income for 2024 was $901 million or $1.29 per share, up from $783.5 million or $1.13 per share in 2023 [4] Revenue Growth - Q4 2024 revenues rose to $1.15 billion from $981.3 million in the prior-year quarter, beating the Zacks Consensus Estimate of $1.14 billion [5] - For the full year 2024, revenues reached $3.65 billion, a 19% increase from $3.06 billion in 2023 [8] - Revenue from the United States and Canada was $900 million, up 16% year over year, while revenues from Europe totaled $196 million, up 21% [8][9] User Engagement - Global monthly active users (MAUs) increased by 11% year over year to 553 million, marking an all-time record [5] - MAUs from the United States and Canada were 101 million, up 4% year over year, while the Rest of World registered 307 million MAUs, up 15% [10] Advertising and Product Development - Pinterest launched the Pinterest Performance+ suite, integrating AI and automation to enhance advertising efficiency for global advertisers [6] - The introduction of lower funnel products, such as Mobile Deep Linking and Direct Links, is driving customer conversion and return on investment for advertisers [7] Cost Management and Cash Flow - Adjusted EBITDA for Q4 2024 was $470.9 million, up from $369.3 million in the prior-year quarter, reflecting disciplined expense management [12] - The company generated $964.6 million in cash from operating activities in 2024, compared to $613 million in 2023 [13] Outlook - For Q1 2025, Pinterest expects revenue in the range of $837-852 million, indicating 13-15% year-over-year growth, with adjusted EBITDA projected between $155-$170 million [14]

Core Insights - Pinterest's stock outperformed the market, rising over 18% following a strong earnings report that exceeded revenue growth expectations [1] User Growth and Monetization Progress - Pinterest's user base reached 553 million monthly active users in Q4, marking an 11% increase year-over-year and the highest total in the company's history [2] - Average revenue per user (ARPU) increased by 6% year-over-year, with notable growth among non-U.S. users [3] Monetization Gap - Approximately 82% of Pinterest users are located outside the U.S. and Canada, with significant differences in revenue generation; U.S. and Canadian users generated $9 in revenue, while European users generated $1.38, and users in the "rest of world" group generated $0.19 [4] - The ARPU for the "rest of world" group increased by 24% year-over-year, indicating potential for narrowing the monetization gap in the future [4] Strong Guidance - Pinterest's Q1 2025 revenue guidance is significantly stronger than expected, suggesting effective management in driving platform visits and creating advertising opportunities [5] - Continued execution of its strategy could lead to a successful year for Pinterest in 2025 [5]