Pinterest third quarter 2024 earnings | Wilnesh News

interest Shares plunged 15% on Thursday after the social media company provided soft guidance for its fourth-quarter revenue despite third-quarter profit exceeding both the top and bottom lines.

According to LSEG, the company performed as follows:

• income: $898 million vs. $896 million expected
• Earnings per share: Adjusted 40 cents, expected 34 cents

The company said fourth-quarter revenue will be between $1.125 billion and $1.145 billion. The midpoint of fourth-quarter guidance was $1.135 billion, below analysts’ expectations of $1.143 billion.

Pinterest Chief Financial Officer Julia Donnelly told analysts on an earnings call that continued weakness among food and beverage advertisers, which are part of the broader consumer goods market, was negatively impacting the social media company’s overall sales. She said the industry’s downturn could continue into the fourth quarter.

Pinterest also stated in an article Archive On Thursday, its board approved a $2 billion stock buyback.

Pinterest’s third-quarter sales grew 18% from $763.2 million in the same period last year.

Pinterest said it had 537 million global monthly active users in the third quarter, exceeding analysts’ expectations of 532.6 million.

The company’s net profit increased 354% year-on-year to $30.56 million. Total costs and expenses for the quarter were $904 million, an increase of 17% from $768 million in the prior year.

Donnelly attributed Pinterest’s rising expenses to investments in research and development and hiring employees with artificial intelligence expertise.

Pinterest’s latest quarterly earnings follow the U.S. presidential election earlier this week and join multiple earnings reports from other tech companies with online advertising businesses.

last week, Amazon It said its advertising business increased 19% year-on-year in the third quarter to US$14.3 billion. He Yuan It said third-quarter sales increased 19% year-on-year to $40.59 billion. However, Meta shares fell slightly as user numbers were weaker than expected and it warned that infrastructure spending would accelerate significantly in 2025.