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]