Pinterest Inc. ended a roaring 2020 adding a record more than 100 million users for the year and recording 76% year-on-year revenue in fourth-quarter revenue thanks to the strength of the holiday retail trade, the company.
Pinterest PINS,
shares rose sharply, to 10% after hours, after rising 0.9% in the regular session to close at $ 77.85.
The online dashboard company, which said its global monthly active users rose 37% year-over-year to 459 million, reported fourth-quarter net profit of $ 207.8 million, or 30 cents a share, compared with a loss of $ 35.7 million or 6 cents. a fee, in the period of the previous year. Adjusted earnings were 43 cents per share, adjusted for share-based compensation and more. Revenue rose to $ 705.6 million, up from $ 399.9 million in the previous quarter. Analysts surveyed by FactSet predicted earnings of 34 cents per share on revenue of $ 645.7 million.
In the company’s press release, CFO Todd Morgenfeld attributed a “remarkable year of growth” to “innovation, execution and the continuation of the holiday season.”
Pinterest made it possible to buy more pins and launched new formats like video as it tried to make its platform more attractive and CEO Ben Silbermann promised more efforts in these areas.
In addition to investing in automated advertising tools, he said the company plans new technology and products “to improve the way people explore and find the products they love with tools … [to] view and plan, ”citing a tool that allows users to try eye shadows on the Pinterest app, for example.
Throughout the year, the company had a loss of 22 cents per share on revenue of $ 1.698 billion. Analysts had predicted a loss of 35 cents per share of $ 1.6 billion in revenue.
In the San Francisco-based profit announcement, Morgenfeld said he expects first-quarter revenue to grow by about 70% year-over-year, but said he would be “monitoring the impact of COVID on the commitment. “, which could be adversely affected if restrictions facilitate.
Another thing the company is looking at, according to Morgenfeld, is privacy and the regulatory environment surrounding the issue. He mentioned that a change in Apple’s operating system update that will allow users to opt for non-specific advertising could affect Pinterest. (Facebook and Apple are embroiled in a war of words for the next change).
As for record annual user growth, Silbermann said in the call that it was helped by an increase in Generation Z users. He said the next wave of growth could come from international markets, which account for 17% of total revenue: “We are still relatively poorly penetrated.”
Pinterest shares have risen 17% to date (and have risen 245% in the last 52 weeks), compared to a 2% increase in the S&P 500 SPX,
so far this year.