Pinterest shares surge after company beats on fourth quarter revenue, shows strong user growth

Core Insights - Pinterest's shares surged by up to 20% following the release of its fourth-quarter earnings, which exceeded revenue expectations [1] - The company reported an adjusted earnings per share of $0.56, influenced by a deferred tax benefit of $1.6 billion [1][2] - Revenue for the fourth quarter increased by 18% year-over-year, reaching $1.85 billion, which included the deferred tax benefit [2] - Pinterest's adjusted EBITDA margin for the fourth quarter was 41%, surpassing Wall Street's projection of 39% [2] - The company anticipates first-quarter sales between $837 million and $852 million, with the midpoint of $844.5 million exceeding analysts' expectations of $833 million [2] - Global monthly active users grew by 11% year-over-year to 553 million, exceeding Wall Street estimates of 547.4 million [3] - The average revenue per user for the fourth quarter was $2.12, higher than the expected $2.09 [3] - CEO Bill Ready stated that the company's strategy is yielding positive results, with increased user engagement and effectiveness for advertisers [4]