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]