Invoice Prepared, CEO of Pinterest, rings the gap bell on the Modern York Stock Exchange on May perhaps perhaps simply 15, 2024.

Brendan McDermid | Reuters

Pinterest shares plunged as mighty as 15% on Thursday after the social media firm equipped subtle guidance for its fourth-quarter revenue despite beating on the cease and bottom traces with its third-quarter earnings.

Here is how the firm performed, based mostly on LSEG:

• Revenue: $898 million vs. $896 million expected
• Earnings per part: 40 cents adjusted vs. 34 cents expected

The firm acknowledged fourth-quarter revenue would possibly be between $1.125 billion and $1.145 billion. The midpoint of the fourth-quarter guidance, $1.135 billion, trailed analyst estimates of $1.143 billion.

Pinterest CFO Julia Donnelly suggested analysts in the heart of an earnings name that ongoing weaknesses from food and beverage advertisers, which would possibly perhaps well be allotment of the broader particular person packaged items market, has negatively impacted the social media firm’s total sales. The drag by this sector will probably continue into the fourth quarter, she acknowledged.

Pinterest also acknowledged in a submitting Thursday that its board licensed a $2 billion part buyback.

Gross sales in Pinterest’s third quarter rose 18% from $763.2 million a one year previously.

Pinterest acknowledged it had 537 million global month-to-month energetic users in the third quarter, topping analyst estimates of 532.6 million.

The firm’s rep profits grew a whopping 354% one year over one year to $30.56 million. Its total label and charges for the quarter were $904 million, up 17% when put next with $768 million the outdated one year.

Donnelly attributed Pinterest’s rising costs to investments in be taught and pattern and hiring for workers with expertise in man made intelligence.

Pinterest’s most stylish quarterly earnings follows the most stylish U.S. presidential election earlier in the week as neatly as to quite a lot of earnings reports from varied tech companies with online marketing companies.

Closing week, Amazon acknowledged its adverts industry grew 19% one year over one year to $14.3 billion in the third quarter, and Meta acknowledged its third-quarter sales rose 19% one year over one year to $40.59 billion. On the replacement hand, Meta shares dropped reasonably on weaker-than-expected particular person numbers and warned of a fundamental acceleration in its infrastructure costs in 2025.