Pinterest Q3 earnings report 2024

Pinterest shares plunged 15% Thursday after the social media company provided soft guidance for its fourth-quarter revenue despite it beating the top and bottom lines with its third-quarter earnings.

Here’s how the company performed, according to LSEG:

• Revenue: $898 million vs. $896 million expected
• Earnings per share: 40 cents adjusted vs. 34 cents expected

The company said that fourth-quarter revenue will be between the range of $1.125 million to $1.145 million. The midpoint of the fourth-quarter guidance, $1.135 million, trailed analyst estimates of $1.143 million.

Sales in Pinterest’s third-quarter rose 18% from $763.2 million a year ago.

Pinterest said it had 537 million global monthly active users in the third quarter, topping analyst estimates of 532.6 million.  

The company’s net income grew a whopping 354% year over year to $30.56 million. Its total cost and expenses for the quarter were $904 million, up 17% compared with $768 million the previous year.

Pinterest’s latest quarterly earnings follows the recent U.S. presidential election earlier in the week in addition to multiple earnings reports from other tech companies with online advertising businesses.

Last week, Amazon said its ads business grew 19% year over year to $14.3 billion in the third quarter, and Meta said its third-quarter sales rose 19% year over year to $40.59 billion. However, Meta shares dropped slightly on weaker-than-expected user numbers and warned of a significant acceleration in its infrastructure expenses in 2025.