Pinterest Surges as Revenue Surpasses $1 Billion in Q4
Key Points:
* Revenue: $1.15 billion, exceeding analyst estimates and marking Pinterest's first billion-dollar quarter
* Ad impressions: Growth of over 40% in Q4
* Stock price: Jumped 18% after earnings report
* Outlook: Strong revenue guidance for Q1 2025
* CEO Bill Ready: Platform is more actionable and driving results for users and advertisers
Expanded Details:
Pinterest reported strong financial results for the fourth quarter of 2024. Revenue hit $1.15 billion, surpassing forecasts and marking the company's first-ever billion-dollar quarter. Advertising impressions rose by over 40% during the quarter, driven by strong performance from Pinterest's AI ad optimization tool.
The company expects sales in the first quarter of 2025 to reach between $837 million and $852 million, exceeding earlier estimates. CEO Bill Ready attributed the growth to increased user engagement and the platform's focus on lower-funnel advertising.
In its annual report, Pinterest highlighted potential business risks related to its efforts around diversity, equity, and inclusion (DEI). The company acknowledged that perceived insufficiencies or excesses in these efforts could impact talent acquisition, retention, and stock price.
Following the positive earnings report, Bernstein has upgraded Pinterest's stock price target to $47, citing the company's strong execution across the board.