Pinterest shares plummet 15% on earnings miss, weak forecast

Core Insights - Pinterest's shares dropped by as much as 15% following the release of third-quarter financial results that fell short of earnings expectations and provided weak guidance [1][2] Financial Performance - Third-quarter sales increased by 17% year-over-year, with net income reaching $92.11 million, a 201% increase from $30.56 million in the same period last year [1] - The company projected fourth-quarter revenue between $1.31 billion and $1.34 billion, with a midpoint of $1.325 billion, which is below Wall Street's expectation of $1.34 billion [2] - Adjusted EBITDA for the third quarter was $306 million, exceeding estimates of $295 million [3] - U.S. and Canada sales for the third quarter were $786 million, lower than the expected $799 million [3] - Global average revenue per user for the third quarter was $1.78, slightly below the projected $1.79 [3] User Metrics - Pinterest reported 600 million global monthly active users in the third quarter, surpassing the projected 590 million [2] - This figure represents an increase from 578 million monthly active users reported in the second quarter [2] Strategic Initiatives - The CEO highlighted that investments in AI and product innovation are yielding positive results, positioning Pinterest as a leader in visual search and an AI-powered shopping assistant for consumers [4]