SAN FRANCISCO (AFP) – Pinterest shares leaped late on Thursday after earnings figures showed the online bulletin board beat earnings and user expectations in the final quarter of last year.
Pinterest shares were up 17 per cent in after-market trades that followed release of the earnings report.
“Pinterest’s impressive fourth quarter (Q4) revenues and swing toward profitability prove the company is realising its potential,” said eMarketer principal analyst Andrew Lipsman.
“Recent product improvements are driving engagement with both users and advertisers in the United States (US), while momentum in international user growth and monetisation lays the foundation for a strong 2020.” Pinterest reported revenue grew 46 per cent to USD400 million in the quarter, and recorded a USD36 million loss. If adjusted for stock-based compensation and other factors, the company would have reported a profit that beat forecasts.
The San Francisco-based Internet firm forecast that its revenue for this year could be as high as USD1.52 billion.
“A strong Q4 marked the end of a year where we improved the foundation of the Pinterest app with more inspiring recommendations, faster performance and improved shopping experiences,” said Co-Founder and Chief Executive Ben Silbermann.