Pinterest has reported its financial results for the third quarter of the fiscal year 2024. The company saw a notable increase in its revenue and net income, although its outlook for the next quarter has disappointed analysts, leading to a significant drop in its stock price in after-hours trading.
For the third quarter ending September 30, Pinterest's revenue rose 18% year-over-year to $898 million, exceeding analysts' expectations. The company's net income reached $30.6 million, a 354% increase from the previous year's $6.7 million. Adjusted net income was $275 million, showing a 42% growth. Adjusted earnings per share were $0.40, surpassing the expected $0.34.
Geographically, Pinterest's revenue growth was seen across all regions, with a 16% increase in the U.S. and Canada, a 20% rise in Europe, and a 38% growth in other regions.
The company's adjusted EBITDA grew to $242 million, up 31% from the prior year, with an improved profit margin of 27%. However, Pinterest reported an operating loss of $5.9 million for the quarter.
Key metrics showed a rise in global monthly active users by 11% to 537 million, with the U.S. and Canada increasing by 3%. The average revenue per user globally was $1.70, a 5% increase.
Pinterest's cash flow from operations doubled over the year to $711 million. It ended the quarter with $1.04 billion in cash and equivalents, a decrease from the previous year.
For the fourth quarter, Pinterest anticipates revenue between $1.125 billion and $1.145 billion, falling short of analyst predictions of $1.14 billion. Operating expenses excluding certain costs are expected to rise 11% to 14% from the previous year.
Pinterest's stock (PINS, Financial) closed at $33.93, up 0.50% during regular trading but dropped 10.76% in after-hours trading to $30.28.
