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Pinterest shares tanked nearly 20% on Tuesday after the company reported third-quarter financial results that missed on earnings per share and provided weak guidance.
Here’s how the company did, compared to analysts’ consensus estimates from LSEG:
- Earnings per share: 38 cents adjusted vs. 42 cents expected
- Revenue: $1.05 billion vs. $1.05 billion expected
Pinterest’s third-quarter sales grew 17% year over year while net income was $92.11 million, up 201% from $30.56 million a year ago during the same period.
The company said fourth-quarter revenue will come in between $1.31 billion and $1.34 billion. The midpoint of the revenue outlook, $1.325 billion, trailed Wall Street’s projections of $1.34 billion.
After the stock move in extended-trading on Tuesday, Pinterest erased its gains for the year.
Pinterest said it recorded 600 million global monthly active users in the third quarter, ahead of the 590 million that StreetAccount was projecting. In August, Pinterestreported 578 million monthly active users for the second quarter.
The company logged $306 million in third-quarter adjusted earnings before interest, taxes, depreciation and amortization, or EBIDTA. That was higher than StreetAccount’s estimates of $295 million.
Third-quarter sales in the U.S. and Canada came in at $786 million, lower than StreetAccount’s estimates of $799 million.
Pinterest’s third-quarter global average revenue per user was $1.78 and less than the $1.79 that StreetAccount was projecting.
“Our investments in AI and product innovation are paying off,” Pinterest CEO Bill Ready said in a statement. “We’ve become a leader in visual search and have effectively turned our platform into an AI-powered shopping assistant for 600 million consumers.”
Pinterest finance chief Julia Donnelly said during an earnings call that the company experienced some “pockets of moderating ad spend” in the U.S. and Canada regions during the third quarter. Donnelly attributed the sales moderation to unspecified “larger U.S. retailers” that are dealing with tariff-related issues putting pressure on their margins.
Regarding the company’s fourth-quarter guidance, Donnelly said that “we see these broader trends and market uncertainty continuing with the addition of a new tariff in Q4 impacting the home furnishing category.”
President Donald Trumpsaid in September that the White House would impose 10% tariffs on imported timber and lumber and 25% duties on kitchen cabinets, bathroom vanities and related furniture.
Tech giants Meta, Alphabet and Amazon reported their most recent quarterly earnings last week. Those reports showed strong digital advertising sales amid their big spending for artificial intelligence infrastructure.
Meta said that its third-quarterrevenue, of which 98% is derived from online ads,soared 26% year-over-year to $51.24 billion, representing the company’s strongest year-over-year sales growth since the first quarter of 2024.
Sales in Amazon’s online ad unitrose 24% year-over-yearto $17.7 billion, which was a faster growth rate than the tech giant’sAWS cloud computing unit.
Alphabet reported $74.18 billion in total advertisingsales for the third quarter, which was a nearly 13% increase from $65.85 billion a year ago. The company’s YouTube unit saw third-quarter online revenue jump 15% increase to $10.26 billion.
Reddit reportedthird-quarter earnings last Thursday and said sales ballooned 68% year-over-year to $585 million while global daily active uniques were up 19% year-over-year to 116 million, topping estimates of 114 million.
Snap reports its quarterly results on Wednesday.
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