/Pinterest sees revenue boom in Q3, driven by recovery in advertising demand – Yahoo Finance

Pinterest sees revenue boom in Q3, driven by recovery in advertising demand – Yahoo Finance

Pinterest released its third quarter earnings report after hours on Wednesday, beating on its top line and bottom lines. The company saw its monthly active users rise 37% and its revenue grow 58% year over year driven with a recovery in advertiser demand. Yahoo Finance’s Myles Udland breaks down the company’s earnings report on The Final Round.

Video Transcript

SEANA SMITH: I want to get to some breaking news that we have here after hours. Pinterest is out with its results. The stock actually popping here after hours, up just over 15%. Myles has those numbers for us. Myles.

MYLES UDLAND: Yeah, Seana, Pinterest has been a massive COVID winner. And the stock right now is trading at a record high in the after hours, above $56 per share. The company coming out reporting adjusted earnings per share of $0.13. The Street was looking for earnings per share of just $0.02. Revenue crushing expectations, $443 million in the most recent quarter for Pinterest. The Street was looking for something closer to $387.8 million.

Monthly active users also beating expectations, particularly from the international segment. Total MAU is 442 million, 98 million in the US. That’s in line with estimates. Internationally, 343 million as of the end of the most recent quarter. 333 is what the Street was looking for there. So again, beating Monthly Active Users by about 12 million, relative– 11 million– relative to expectations.

Also beating on average Revenue Per User, RPU, number that is very closely watched for social networks. $3.85 for Pinterest US users, $1.03 overall. That’s better than the $0.92 expected. And again, the Street was looking for $3.43 in RPU for its US users. So about $0.40 better than expected.

Overall, again, very strong quarter for Pinterest. Stock has been on an absolute tear over the last several months. Stock was down 7% during today’s trading session, but again, up about 15% to a record high. It had traded above $56 a share right now, around $55.80. But again, a strong quarter here for Pinterest.

ANDY SERWER: And, you know, Myles, it’s not that surprising perhaps because there is sort of a new narrative when it comes to social media. And that is Facebook’s not the only game in town.

And if you go back to last week, you know, Snap sort of paved the way here, right? You could see, well, there is hope, and hope is alive for some competitors here. And by the way, that’s not such a bad thing for Facebook, of course, because they need competitors out there when it comes to Washington, DC.

The other thing is, is that when you look at the market cap and the number of MAUs, there is definitely upside for Pinterest. And then finally, the boycott, the Facebook boycott, might have helped them out on the revenue side.

MYLES UDLAND: Yeah, and just to quickly spread the circle on everything in Pinterest release, went through all the better than expected results. Also their outlook, they’re looking for revenues in the fourth quarter gross 60%. Revenues were up 58% in the third quarter. So an acceleration there, Andy, as you talk about. A lot of those tailwinds we’re looking at for Pinterest right now.

SEANA SMITH: Yeah, certainly an outperformer here. That’s been the case, Myles, like you laid out at the start of your [INAUDIBLE] over the last several months, as we see more and more people spend more time on Pinterest. So clearly a stock that has been in favor here amongst investors. And we can see shares popping just around 15%.

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