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DJ Pinterest Swings to 4Q Profit As Revenues Rise on User Growth

· 02/04/2021 16:05

By Kimberly Chin

Pinterest Inc. recorded strong revenue growth in the fourth quarter as the pandemic continues to drive users and advertisers to its platform.

The online image-sharing company swung to a profit of $208 million, from a loss of $36 million in the year-earlier quarter. Its per-share profit was 30 cents a share. Excluding stock-based compensation, amortization and other costs, Pinterest had earnings of 43 cents a share, topping analysts' expectations of a profit of 34 cents a share, per a FactSet poll.

Overall revenue surged 76% over the year to $706 million driven by the holiday season and product improvements that helped advertisers maximize their budgets and get more conversions, the company said. Analysts on average were targeting revenue around $645.7 million.

U.S. revenue climbed 67% from a year earlier to $582 million while international revenue increased 17% to $123 million.

Pinterest had global monthly active users of 459 million, increasing 37% from last year.

"We continued to see users engaging and finding inspiration on Pinterest as the world continued to grapple with Covid-19," Pinterest said in a letter.

Pinterest expects first-quarter revenue to increase in the low-70% range year-over-year.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

February 04, 2021 16:05 ET (21:05 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.