Pinterest's forecast disappoints investors seeking holiday season ad boost
Adds details in paragraph 9, analyst comment in paragraphs 10 & 11
By Jaspreet Singh
Nov 7 (Reuters) -Pinterest's PINS.N fourth-quarter revenue forecast failed to impress investors looking for a boost from the upcoming holiday shopping season, at a time when bigger online ad sellers largely outperformed, sending its shares down 11% in extended trading on Thursday.
The San Francisco, California-based company also announced a new stock buyback program of up to $2 billion and canceled the September 2023 program under which $500 million were left for repurchase.
Pinterest's results follow quarterly reports by digital ad bellwethers – including Google-parent Alphabet GOOGL.O, Meta Platforms META.O, Reddit RDDT.N and Snap SNAP.N – which posted upbeat third quarter revenue, helped by robust ad spending.
The image-sharing platform faces stiff competition from the likes of Meta-owned Facebook and Instagram, which have become the go-to platforms for advertisers because of their larger user base.
Pinterest released Performance+ suite in October, helping advertisers better target users with new AI tools and automation features on the platform.
"Performance+ is still in the early rollout phase, with many advertisers limiting budget shifts and adoption of new features during holiday peak period," CFO Julia Donnelly said on a post-earnings call.
The company is also seeing "softness" among food and beverage advertisers, Donnelly said.
Pinterest forecast fourth-quarter revenue to be between $1.13 billion and $1.15 billion, the midpoint of which was in line with analysts' average estimate of $1.14 billion, according to data compiled by LSEG.
It forecast quarterly adjusted operating expenses between $495 million to $510 million, growing 11% to 14% from a year earlier, driven by investments in AI talent and product initiatives.
"Pinterest's Q3 continues a streak of smaller social media competitors orbiting Meta gaining ground with advertisers," Emarketer analyst Daniel Konstantinovic said.
The company's "steep jump" in expenses show that its smaller size does not exclude it from scrutiny around costs, Konstantinovic added.
Revenue for the third quarter grew 18% to $898.4 million, compared with estimates of $896.4 million.
Adjusted profit per share for the quarter came in at 40 cents, compared with estimates of 34 cents.
Global monthly active users on the platform rose 11% to 537 million in the July-to-September period, compared with estimates of 531.5 million.
Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
