Pinterest Q4 Earnings Fall Short of Estimates, Revenues Rise Y/Y

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]