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DJ Pinterest Stock Spikes As Earnings Boosted By Strong Online Ad Demand -- Barrons.com

· 02/04/2021 18:05
By Eric J. Savitz

Pinterest shares are trading sharply higher in late trading Thursday on better-than-expected fourth quarter results. It's the latest demonstration of growth in online advertising demand, in particular on social media sites.

For the quarter, Pinterest (ticker: PINS) posted revenue of $706 million, up 76% from a year ago and well above the Wall Street consensus forecast of $646 million. Adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was $299 million, above Wall Street's $224 million estimate. Non-GAAP earnings were $294.3 million, up 283%, or 43 cents a share, beating the Street's 34 cents.

Pinterest said it expects revenue growth in the March quarter to be in the low 70s on a percentage basis; previous Wall Street estimates had called for 57% growth.

According to a presentation prepared for a call with investors, monthly average users were 459 million, up 37% from a year ago. Average revenue per user was $1.57, up 29% from $1.22 a year ago and from $1.03 in the third quarter. In the U.S., ARPU jumped to $5.94, versus $4 a year ago and $3.85 in the third quarter.

CFO Todd Morgenfeld said in a statement that the company benefited from "an earlier and longer holiday season," among other factors.

"Our investments in ad tools and sales coverage continued to pay off, especially during a strong holiday season," the company said in a letter to shareholders. "Advertising demand was healthy across different advertiser sizes and verticals, with retail demand further building off the recovery in Q3."

Pinterest shares have rallied 10% in late trading to $85.77.

Write to Eric J. Savitz at eric.savitz@barrons.com

(END) Dow Jones Newswires

February 04, 2021 18:05 ET (23:05 GMT)

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