Market Overview - The U.S. stock market experienced a downturn, with major indices like the S&P 500 and Nasdaq showing negative futures [1] - The Dow Jones Industrial Average fell 0.5% to 47,085.24, the S&P 500 dropped 1.2% to 6,771.55, and the Nasdaq decreased 2.04% to 23,348.63 [2] Company Performance Advanced Micro Devices Inc. (AMD) - AMD reported third-quarter revenue of $9.25 billion, exceeding analyst expectations of $8.74 billion [3] - Adjusted earnings per share were $1.20, surpassing estimates of $1.16, driven by growth in the AI data center business [3] - AMD shares fell 3.70% to close at $250.05, with after-hours trading showing a further decline of 4.7% to $238.20 [2] Super Micro Computer, Inc. (SMCI) - Super Micro Computer reported earnings of 35 cents per share, missing the expected 40 cents, leading to a stock decline [4] - Quarterly revenue was $5.01 billion, below analyst estimates of $5.99 billion and down from $5.93 billion a year earlier [4] - The stock dropped 6.40% to $47.50, with after-hours trading showing a decline of 9.5% to $42.99 [3] Upstart Holdings, Inc. (UPST) - Upstart reported earnings of 52 cents per share, beating the estimate of 42 cents, but revenue fell short of expectations [6] - The company projected fourth-quarter revenue of $288 million, below the $303.61 million analyst estimate, and cut its fiscal 2025 revenue outlook to $1.03 billion from $1.05 billion [6] - Shares slid 2.73% to $46.24, plummeting 15.3% to $39.15 in extended trading [5] Pinterest Inc. (PINS) - Pinterest reported third-quarter revenue of $1.05 billion, aligning with analyst estimates, but adjusted earnings of 38 cents per share missed the expected 42 cents [8] - The company forecasted fourth-quarter revenue between $1.31 billion and $1.34 billion, slightly below estimates of $1.34 billion [8] - Shares decreased by 2.39% to $32.91, dropping sharply by 20.09% to $26.30 in after-hours trading [7] Rivian Automotive (RIVN) - Rivian reported third-quarter revenue of $1.56 billion, up 78% year-over-year and above the $1.50 billion estimate [11] - Automotive revenue rose 47% to $1.14 billion, while software and services revenue surged 324% to $416 million [11] - The stock fell 5.23% to $12.50, but gained 3.2% to $12.90 in extended trading [10]

Core Insights - Pinterest reported disappointing Q3 earnings, with EPS falling short of expectations, leading to a nearly 20% drop in stock price post-announcement [1] - The company’s Q3 revenue reached $1.05 billion, a 17% year-over-year increase, aligning with market expectations, while net profit surged 201% to $92.11 million [1] - Q4 revenue guidance is projected between $1.31 billion and $1.34 billion, with a midpoint of $1.325 billion, below analyst expectations of $1.34 billion [1] Financial Performance - Q3 adjusted EPS was $0.38, below the Wall Street forecast of $0.42 [1] - North America, the most profitable market, saw a slight increase in monthly active users to 103 million, but revenue of $786 million fell short of the expected $799 million [2] - Adjusted EBITDA for Q3 was $306 million, exceeding the forecast of $295 million, while global ARPU was $1.78, slightly below the expected $1.79 [5] Market Context - Competitors like Meta, Google, Amazon, and Reddit reported strong Q3 earnings driven by robust advertising spending, contrasting Pinterest's challenges [4] - Meta's Q3 revenue surged 26% to $51.24 billion, while Amazon's online ad sales grew 24% to $17.7 billion [4] - Pinterest's advertising revenue is primarily derived from its visual search engine, which aims to enhance user engagement in sectors like fashion and home decor [1][5] User Engagement - Pinterest's global monthly active users reached a record high of 600 million, surpassing the market expectation of 590 million [5] - The company introduced the "Pinterest Assistant," an AI-driven shopping companion aimed at improving user experience [1] - Despite the growth in user numbers, challenges remain in monetizing new users at a rate comparable to North American users [5]

Core Viewpoint - Pinterest reported disappointing Q3 earnings, with EPS falling short of expectations, leading to a nearly 20% drop in stock price post-announcement due to intense competition from major platforms like Meta [1] Financial Performance - Q3 revenue reached $1.05 billion, a 17% year-over-year increase, meeting market expectations; net profit was $92.11 million, up 201% from $30.56 million in the same period last year [1] - Adjusted EPS was $0.38, below Wall Street's expectation of $0.42 [1] - Q4 revenue guidance is projected between $1.31 billion and $1.34 billion, with a midpoint of $1.325 billion, lower than analyst expectations of $1.34 billion [1] User Metrics - Pinterest's North American market saw a slight increase in monthly active users, growing by 1 million to 103 million, but revenue from this region was $786 million, below the expected $799 million [2] - Global monthly active users reached a historic high of 600 million, exceeding market expectations of 590 million [6] Market Context - Competitors like Meta, Google, Amazon, and Reddit reported strong Q3 earnings driven by robust advertising spending, with Meta's revenue increasing by 26% to $51.24 billion [5] - Pinterest's advertising revenue is heavily reliant on its visual search engine, which aims to enhance user engagement in sectors like fashion and home decor [1] Challenges and Outlook - CFO Julia Donnelly noted a slowdown in advertising spending in the U.S. and Canada, particularly affecting large retailers facing tariff-related issues [2] - The company anticipates ongoing market uncertainty and the impact of new tariff policies on home goods in Q4 [3] - Despite challenges, Pinterest's adjusted EBITDA for Q3 was $306 million, surpassing expectations of $295 million, with ARPU at $1.78, slightly below the anticipated $1.79 [6]

Core Insights - Pinterest reported revenue of $1.05 billion for the quarter ended September 2025, reflecting a year-over-year increase of 16.8% and a slight surprise of +0.17% over the Zacks Consensus Estimate [1] - The earnings per share (EPS) was $0.38, down from $0.40 in the same quarter last year, resulting in an EPS surprise of -5% compared to the consensus estimate [1] Financial Performance - Monthly Active Users (MAUs) globally reached 600 million, exceeding the average estimate of 592 million [4] - Average Revenue Per User (ARPU) globally was $1.78, matching the average estimate [4] - Geographic revenue breakdown showed: - U.S. and Canada: $786 million, slightly below the estimate of $798.57 million, with a year-over-year increase of +9.3% [4] - Rest of World: $70 million, surpassing the estimate of $64.98 million, with a significant year-over-year increase of +66.7% [4] - Europe: $193 million, exceeding the estimate of $184.51 million, representing a year-over-year increase of +40.9% [4] Market Performance - Pinterest shares returned +5.2% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Insights - Pinterest reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.40 per share, and showing a decrease from $0.40 per share a year ago, resulting in an earnings surprise of -5.00% [1] - The company generated revenues of $1.05 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.17%, and showing an increase from $898.37 million year-over-year [2] - Pinterest's stock has increased approximately 16.2% since the beginning of the year, slightly underperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $1.33 billion, and for the current fiscal year, it is $1.68 on revenues of $4.23 billion [7] - The estimate revisions trend for Pinterest was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Pinterest belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Skip to Main Content Skip to Search This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Pinterest Reports Soft Earnings. The Stock Is Tumbling. By Adam Levine Updated Nov 04, 2025, 5:41 pm EST / Original Nov 04, 2025, 11:33 am EST Share Resize Reprints In this article PINS S ...

Financial Data and Key Metrics Changes - Q3 2025 revenue reached $1.049 billion, growing 17% year-over-year, with a 16% increase on a constant currency basis [31][32] - Adjusted EBITDA for Q3 was $306 million, representing a margin of 29%, with a 170 basis point expansion year-over-year [34][35] - Free cash flow for Q3 was $318 million, indicating a strong cash-generative nature of the business [35] Business Line Data and Key Metrics Changes - Monthly active users (MAUs) reached 600 million, marking a 12% growth year-over-year, with significant strength in Gen Z users [5][30] - Revenue from the US and Canada was $786 million, growing 9%, while Europe saw revenue of $193 million, growing 41% [31] - Revenue from the rest of the world was $70 million, growing 66% year-over-year [31] Market Data and Key Metrics Changes - The US and Canada region had 103 million MAUs, growing 4%, while Europe had 150 million MAUs, growing 8% [30] - The rest of the world markets had 347 million MAUs, growing 16% [30] - Ad impressions grew 54% year-over-year, while ad pricing declined 24% due to a shift towards lower-priced international markets [32][33] Company Strategy and Development Direction - The company is transforming into an AI-powered visual-first shopping assistant, enhancing user engagement and advertiser partnerships [4][9] - There is a focus on expanding monetization in international markets, which currently represent only 25% of global revenue despite having 83% of global users [24][28] - The introduction of Pinterest Assistant aims to enhance user experience through voice-activated searches and personalized recommendations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid- to high-teens revenue growth targets over the medium and long term, despite challenges in the UCAN region [52][55] - The company is optimistic about the potential of AI-driven optimization and the adoption of Performance Plus campaigns among smaller and mid-market advertisers [60][62] - Management noted that the digital ad environment remains challenging, particularly for larger retailers navigating tariff-related margin pressures [59] Other Important Information - The company allocated $199 million towards share repurchases and $115 million for net share settlement of equity awards to mitigate dilution [36] - The Q4 revenue guidance is projected to be between $1,313 million and $1,338 million, representing a 14%-16% growth year-over-year [36][37] Q&A Session Summary Question: Future of e-commerce and Pinterest's strategy - Management highlighted the proactive nature of Pinterest's AI, which anticipates user preferences without explicit prompts, enhancing user engagement and shopping experiences [45][48] Question: Impact of tariffs on ad spend - Management confirmed that while there was a pullback in ad spend from some US retailers, there was a partial recovery in spending from Asia-based e-commerce players [51][52] Question: Digital ad environment and UCAN performance - Management noted consistent revenue growth despite challenges in the UCAN region, emphasizing the importance of AI-driven platforms for future optimization [59][60] Question: AI-generated content strategy - Management clarified that while they embrace AI-generated content, they prioritize content quality and user choice, allowing users to filter AI content [66][70] Question: Relationship with Magnite and new demand sources - Management stated that first-party ad demand remains the primary growth driver, with ongoing efforts to integrate third-party demand sources [73][74] Question: SMB and mid-market opportunities - Management expressed confidence in the Performance Plus campaigns, noting higher conversion rates and revenue growth among smaller and mid-market advertisers [78][79]

Financial Data and Key Metrics Changes - Q3 2025 revenue reached $1.049 billion, growing 17% year-over-year, with a 16% increase on a constant currency basis [29][30] - Adjusted EBITDA for Q3 was $306 million, representing a margin of 29%, with a 170 basis point expansion year-over-year [32] - Free cash flow for Q3 was $318 million, indicating a highly cash-generative business model [32] Business Line Data and Key Metrics Changes - Outbound clicks to advertisers increased by 40% year-over-year in Q3, demonstrating enhanced engagement [8] - Ad impressions grew by 54% in Q3, while ad pricing declined by 24% year-over-year, primarily due to a shift towards lower-priced international markets [30] - Performance+ campaigns have shown a 24% higher conversion lift for retail advertisers compared to traditional campaigns [19][76] Market Data and Key Metrics Changes - Monthly active users (MAUs) reached 600 million, marking a 12% increase year-over-year, with significant growth in Gen Z users [6][28] - U.S. and Canada MAUs grew to 103 million, up 4%, while Europe and the rest of the world saw MAUs of 150 million (up 8%) and 347 million (up 16%) respectively [28] - Revenue from the U.S. and Canada was $786 million (up 9%), Europe generated $193 million (up 41%), and the rest of the world brought in $70 million (up 66%) [29] Company Strategy and Development Direction - The company is focused on becoming an AI-powered visual-first shopping assistant, enhancing user experience through proactive AI recommendations [4][10] - There is a clear strategy to deepen engagement with users and expand monetization opportunities in international markets, which are currently under-monetized [9][22] - The introduction of Pinterest Assistant aims to enhance the discovery journey and improve user engagement through voice-activated interactions [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid to high teens revenue growth targets over the long term, despite challenges in the U.S. retail sector due to tariff-related pressures [49][55] - The company is optimistic about the potential of AI-driven optimization in advertising, which is expected to enhance performance and expand market opportunities [56][59] - Management highlighted the importance of user engagement metrics, noting that clicks to advertisers have increased significantly, outpacing revenue growth [60] Other Important Information - The company has allocated $199 million towards share repurchases to mitigate dilution from employee stock-based compensation [33] - The international monetization gap is being addressed, with shopping ad revenue in international markets growing significantly [26][25] - The company is exploring new sources of demand through programmatic advertising and partnerships, such as with Magnite [71] Q&A Session Summary Question: Future of e-commerce and Pinterest's strategy - Management emphasized the proactive nature of Pinterest's AI, which anticipates user preferences without explicit prompts, enhancing user engagement [42][45] Question: Impact of tariffs on ad spend - Management noted that while there was a pullback in ad spend from U.S. retailers, there are still areas of momentum in emerging verticals and smaller advertisers [48][50] Question: Digital ad environment and UCAN performance - Management reported consistent revenue growth despite challenges in the UCAN market, with a focus on expanding AI-driven advertising solutions [55][56] Question: AI-generated content strategy - Management clarified that while they embrace AI-generated content, they prioritize content quality and user choice in what they see [63][68] Question: Relationship with Magnite and new demand sources - Management stated that first-party ad demand remains the primary growth driver, with ongoing efforts to integrate third-party demand sources [71][72] Question: SMB and mid-market opportunities - Management highlighted the strong performance of Performance+ campaigns among smaller and mid-market advertisers, indicating significant growth potential in this segment [76]

Core Insights - The social-media platform anticipates a slowdown in revenue growth for the fourth quarter, projecting an increase of 14% to 16% compared to a 17% growth in the third quarter [1] Revenue Performance - The company recorded a revenue growth of 17% in the third quarter [1] - The expected revenue growth for the fourth quarter is lower than the previous quarter's performance, indicating a potential trend shift [1]

Financial Data and Key Metrics Changes - In Q3 2025, Pinterest reported revenue of $1.049 billion, representing a 17% year-over-year growth [6][30] - Adjusted EBITDA for Q3 was $306 million, with a margin of 29%, reflecting a 170 basis point expansion compared to the previous year [33] - Free cash flow for Q3 was $318 million, indicating a strong cash-generative nature of the business [33] Business Line Data and Key Metrics Changes - Outbound clicks to advertisers increased by 40% year-over-year in Q3, demonstrating enhanced engagement with advertisers [8] - The number of unique shopping SKUs with paid ad impressions grew over 100% year-over-year, driven by the adoption of ROAS bidding [23][52] - Pinterest Performance Plus campaigns have shown a 24% higher conversion lift compared to traditional campaigns, particularly benefiting smaller and mid-market advertisers [63] Market Data and Key Metrics Changes - Monthly active users (MAUs) reached 600 million, growing 12% year-over-year, with significant growth in the U.S. and Canada, Europe, and the rest of the world [5][29] - Revenue from the U.S. and Canada was $786 million, growing 9%, while Europe saw a 41% increase to $193 million, and the rest of the world grew 66% to $70 million [30] - International markets represented 25% of global revenue, indicating significant growth potential in these regions [25] Company Strategy and Development Direction - Pinterest is transforming into an AI-powered visual-first shopping assistant, enhancing user engagement and advertiser partnerships [4][10] - The company is focusing on expanding its share of wallet with mid-market and smaller advertisers while also increasing monetization in international markets [9][28] - New features like Pinterest Assistant and multimodal search are being developed to enhance user experience and drive engagement [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid- to high-teens revenue growth targets over the medium to long term, despite some ad spend moderation in the U.S. [46][49] - The company is optimistic about the potential of AI-driven optimization and the ongoing rollout of Performance Plus solutions [52][53] - Management noted that the digital ad environment remains challenging, particularly for larger retailers, but sees opportunities in emerging verticals and smaller advertisers [49][51] Other Important Information - Pinterest's international monetization is still in early stages, with significant room for growth as the company scales proven strategies from the U.S. [25][28] - The company is actively investing in AI and product innovation to enhance user experience and drive advertiser performance [33][36] Q&A Session All Questions and Answers Question: Future of e-commerce and Pinterest's strategy - Management highlighted Pinterest's proactive AI-driven approach, which anticipates user preferences and enhances engagement, positioning the platform uniquely in the e-commerce landscape [39][40] Question: Digital ad environment and UCAN performance - Management noted that despite a challenging ad environment, Pinterest achieved 17% revenue growth, driven by strong performance in emerging verticals and smaller advertisers [49][50] Question: Relationship with Magnite and new demand sources - Management clarified that first-party ad demand remains the primary growth driver, with ongoing efforts to integrate third-party demand sources [60][61] Question: SMB and mid-market opportunity - Management emphasized the significant potential in the SMB and mid-market segments, with Performance Plus campaigns driving higher conversion rates and revenue growth [63]