The online-pinboard company, which claimed its global monthly active users elevated 37% year over year to 459 million, reported Q4 net income of $207.8 million, or 30 cents a share, compared with a loss of $35.7 million, or 6 cents a share, in the year-ago period. Adjusted earnings were 43 cents a share, adjusted for stock-based compensation and more. Revenue rose to $705.6 million from $399.9 million in the year-ago quarter. Analysts had predicted earnings of 34 cents a share on revenue of $645.7 million.
CFO Todd Morgenfeld accredited the “remarkable year of growth” to “continued product innovation, execution and an earlier and longer holiday season” during the company’s news release. Pinterest made more pins “shoppable” and rolled out new formats like video as it tried to make its platform more engaging, and CEO Ben Silbermann promised more efforts in those areas. L Brands Welcomes a New Victoria Secret CEO
For the full year, the company had a loss of 22 cents a share on revenue of $1.69 billion. Analysts foresaw a loss of 35 cents a share on $1.6 billion in revenue. On the San Francisco-based company’s earnings call, Morgenfeld said he expects Q1 revenue to grow about 70% year over year, but said he would be “keeping an eye on the impact of COVID on engagement,” which could be negatively affected if restrictions ease. Mercedes Benz Parent Daimler Splits Into Two Companies To Focus On EV
Another thing the company is keeping tabs on, per Mr. Morgenfeld, is privacy and the regulatory environment around the issue. He noted that a change in Apple’s operating system update that will enable users to opt out of some targeted advertising could affect Pinterest.