Core Insights - Pinterest's international revenue performance is crucial for assessing its financial resilience and growth prospects [1][2] - The company's ability to penetrate international markets significantly influences its financial health and growth trajectory [2][3] Revenue Performance - For the quarter ending December 2024, Pinterest reported total revenue of $1.15 billion, a year-over-year increase of 17.6% [4] - International revenue from the Rest of World segment was $58 million, accounting for 5.03% of total revenue, exceeding analyst expectations of $53.89 million [5] - Europe contributed $196 million, or 16.98% of total revenue, also surpassing expectations of $190.28 million [6] Future Projections - Analysts project Pinterest's total revenue for the current fiscal quarter to be $845.02 million, reflecting a 14.2% increase year-over-year [7] - For the entire year, total revenue is forecasted at $4.17 billion, an improvement of 14.3% from the previous year, with expected contributions of 5% from Rest of World and 16.5% from Europe [8] Market Dependency - Pinterest's reliance on global markets for revenue presents both opportunities and challenges, making the monitoring of international revenue trends essential for predicting future performance [9][10]

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]

Core Viewpoint - Pinterest, Inc. (NYSE: PINS) stock experienced a significant increase following the release of strong earnings results, indicating a potential recovery in investor sentiment after previous doubts about the company's growth story [1]. Group 1: Earnings Performance - The earnings report for Pinterest showed strong results, which contributed to the surge in stock price [1]. - Prior to the earnings release, investor sentiment was low, suggesting a lack of confidence in Pinterest's growth trajectory [1]. Group 2: Investment Strategy - The investment group led by Julian focuses on stocks with a high probability of delivering substantial alpha compared to the S&P 500, emphasizing a combination of growth principles and strict valuation criteria [1]. - Julian Lin, as a financial analyst, seeks undervalued companies with long-term growth potential, prioritizing those with robust balance sheets and effective management teams [1].

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]

Core Insights - Pinterest's financial report for Q4 2023 shows strong revenue growth and user engagement, despite a slight miss in adjusted earnings per share [3][5]. Financial Performance - Revenue for Q4 2023 was $981.3 million, increasing to $1.154 billion in Q4 2024, representing an 18% growth and beating expectations [2]. - Adjusted earnings per share rose from $0.53 to $0.56, marking a 6% increase, but this was below expectations [2]. - Monthly active users (MAUs) grew from 498 million to 553 million, an 11% increase, exceeding expectations [2][3]. - Average revenue per user (ARPU) increased from $2.00 to $2.12, a 6% rise [2]. Market Reaction - Following the earnings report, Pinterest's stock rose approximately 16% in after-hours trading, reflecting investor enthusiasm despite the earnings miss [6]. Monetization and User Growth - Monetization is particularly strong in international markets, which account for over 80% of Pinterest's user base. Revenue growth was 16% in the U.S. and Canada, 21% in Europe, and 44% in the rest of the world [4]. - The average user outside the U.S., Canada, and Europe generated 24% more revenue year-over-year [4]. - User growth is critical, as Pinterest's user base had previously declined post-COVID-19 reopening but has since rebounded [9]. Future Guidance - Pinterest's first-quarter guidance is optimistic, with expected revenue between $837 million and $852 million, surpassing analyst expectations of $832.77 million [5]. - Continued user growth and effective monetization, especially in international markets, will be essential for sustaining profits in 2025 [9].

Pinterest shares surged 19% after beating Wall Street's fourth-quarter sales estimates and showing robust user growth from a year ago.The image-sharing company reported revenues of $1.15 billion, ahead of a $1.14 billion estimate from analysts surveyed by LSEG. The figure represented 18% year-over-year growth.Along with the revenue beat, the company offered an upbeat sales outlook. Pinterest said its expects revenues between $837 million and $852 million during the first quarter, versus and LSEG estimate of ...

Pinterest listed the latest attacks on diversity, equity, and inclusion as a possible business risk in its latest 10-K filing. The company wrote in its filing to investors that if its efforts around DEI “are perceived as insufficient or overdone,” then it “may not be able to attract and retain talent” and that the company “may be subject to investigations, litigation, and other proceedings.”  “Our brand and reputation and stock price may be harmed,” the company continued. Pinterest did not immediately resp ...

Financial Data and Key Metrics Changes - In 2024, Pinterest generated $3.65 billion in revenue, representing a 19% growth, more than doubling the growth rate from 2023 [51] - Adjusted EBITDA increased by approximately 50% year over year, reaching over $1 billion, with margins expanding by 510 basis points [53][54] - The company achieved GAAP profitability on a net income basis for the first time since 2021 [54] Business Line Data and Key Metrics Changes - In Q4, Pinterest achieved its first $1 billion revenue quarter, growing revenue by 18% [12][56] - The revenue growth was primarily driven by lower funnel clicks and conversions-based objectives, indicating the effectiveness of new performance tools [51][56] - Ad impressions grew by 43% in Q4, while ad pricing declined by 18% year over year [60] Market Data and Key Metrics Changes - Global monthly active users (MAUs) reached 553 million, growing 11% year over year [54] - The US and Canada region had 101 million MAUs, growing 4%, while Europe had 145 million MAUs, growing 7%, and the rest of the world had 307 million MAUs, growing 15% [55] - Revenue from the rest of the world grew 44% on a reported basis, indicating strong international market performance [60] Company Strategy and Development Direction - Pinterest's strategy focuses on enhancing user experience through actionability, relevance, and curation, aiming to distinguish itself as a positive online space [10][80] - The company plans to invest in AI and improve curation experiences to facilitate seamless transitions from inspiration to action for users [12][32] - The introduction of Performance Plus aims to enhance advertiser experience and drive performance improvements [34][106] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, highlighting the successful integration of AI into user experience and advertising [12][48] - The company anticipates continued revenue growth in Q1 2025, projecting revenue between $837 million to $852 million, representing 13% to 15% growth year over year [67][69] - Management emphasized the importance of maintaining a positive environment for users, particularly Gen Z, which aligns with better business outcomes [48][49] Other Important Information - Pinterest's holiday shopping initiatives included gift guides that drove deeper engagement, resulting in a 40% higher click-through rate for recommended products [25][97] - The company reported a significant income tax benefit of $1.6 billion due to the release of a valuation allowance against deferred tax assets [63] - Pinterest's ethos around positivity and representation in content has proven to enhance user engagement, with users utilizing refinement tools saving 75% more pins [48][49] Q&A Session Summary Question: What are the key drivers of revenue growth in Q4? - Revenue growth was primarily driven by lower funnel clicks and conversions-based objectives, with significant contributions from retail and emerging verticals like technology and financial services [56][58] Question: How is Pinterest leveraging AI in its operations? - AI is integrated into user experience and advertising, enhancing content recommendations and improving ad relevance, which has led to increased user engagement and advertiser performance [12][90] Question: What are the expectations for Q1 2025? - Pinterest expects Q1 revenue to be in the range of $837 million to $852 million, reflecting growth despite potential headwinds from foreign exchange and seasonal factors [67][69]