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Pinterest Q4 Revenue Gains 46% YoY with 335M Monthly Users

Jordan
Major
2 years ago
3 mins read

Pinterest posted an excellent Q4 with revenue rising 46% year-over-year (YoY). The company reported $399.89 million in revenue.

The number of active users also increased to 335 million representing a 26% increase from the same time in 2018. In the US, they were 88 million active users, while internationally, they reached 247 million.

Consumer packaged goods advertisers and conversion optimization ad products were the best performing segments. Pinterest’s generally accepted accounting principles (GAAP) net loss for that period was $35.718 million versus net income of $47.016 million in Q4 2018, Ad Week reports.

Based on adjusted stock earnings before interest, taxes, debt, and amortization basis (EBITDA), Pinterest earned profitability. It tallied $77.308 million in Q4 up from $51.86 million in 2018.  The company’s shareholder letter reads:

“Our EBITDA margin was flat year-over-year as we delivered a brand and comprehension marketing campaign in select cities and continued to make investments in headcount.”

The company also topped the $1 billion level in revenue for the first time in the full year 2019. It totaled $1.14 billion, representing a 51% year-over-year increase.

The company’s product improvements and growing conversion visibility drove YoY growth of 150% in conversion optimization revenue for that quarter.

The Growth

Pinterest’s dynamic retargeting product that was enhanced in Q3 2019 showed strong uptake and performance. The company’s conversion analysis systematically shows advertisers how longer attribution windows let them measure more conversions.

Looking at shopping, Pinterest said that catalog feed uploads were up 70% in Q4 compared to Q3. Also, clicks on reliable product Pins doubled year-over-year.

Online shopping appears more attractive when consumers trust sellers in the future. Pinterest plans to launch a Verified Merchants Program, initially focusing on fashion and home décor. The company also plans to tweak its site to ensure that it becomes more user-friendly.  

Co-founder and CEO Ben Silbermann of Pinterest commented:

“In 2020, we continue to pursue our goal of making Pinterest the Internet’s home for inspiration by focusing on delivering relevant content, ads and shopping experiences so Pinners can easily go from inspiration to action.”

Pinterest’s strategic priorities for 2020 include ads diversification, content, shopping, and use case expansion.

Stock Performance

The year-to-date (YTD) Pinterest (NYSE: PINS) stock performance was maintaining an uptrend. Nonetheless, the stock price is currently oscillating in the overbought area, as indicated by the Stochastic RSI indicator.

Pinterest (PINS) stock price performance YTD. TradingView data.

Therefore, the price retracement is possible if the bulls fail to sustain the current buying power.

RELATED: Snapchat (SNAP) Quarterly Earnings Unfavorable, Stock Slumps, CEO Optimistic

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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