Pinterest's (PINS) Q3 Earnings Beat, Revenues Surge Y/Y
Pinterest's (PINS) third-quarter 2021 results reflect strength in international user base.
Pinterest PINS reported third-quarter 2021 non-GAAP earnings of 28 cents per share, which beat the Zacks Consensus Estimate by 16.7% and surged 115.4% year over year.
Revenues soared 42.9% year over year to $633 million and beat the Zacks Consensus Estimate by 0.9%.
Revenues from the United States increased 33.2% year over year to $498 million. International revenues soared 95.7% year over year to $135 million.
User Base Details
Monthly active users (MAUs) increased 1% from the prior-year quarter to 444 million globally. While United States MAUs decreased 10% to 89 million, International MAUs grew 4% from the year-ago quarter to 356 million.
Pinterest, Inc. Price, Consensus and EPS Surprise
Global average revenue per user (ARPU) increased 37% from a year ago to $1.41.
While ARPU in the United States increased 44% year over year to $5.55, International ARPU surged 81% to 38 cents.
Pinterest’s third-quarter 2021 total costs and expenses increased 22.2% year over year to $438 million.
For the reported quarter, research and development expenses increased 16.1% from the prior-year period to $186 million. Sales and marketing expenses surged 31.7% year over year to $156.1 million.
General and administrative expenses decreased 55.7% year over year to $65.7 million.
Adjusted EBITDA (32% of total revenues) was $201.5 million for third-quarter 2021, up 117% year over year.
The company ended Sep 30, 2021 with cash, cash equivalents and marketable securities of $2.31 billion compared with $2.14 billion as of Jun 30, 2021.
Pinterest expects fourth-quarter revenues grow in the high teens percentage range year over year. Non-GAAP operating expenses are expected to grow in the low teens sequentially.
Zacks Rank & Stocks to Consider
Pinterest currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials AMAT, Cisco Systems CSCO and Clearfield CLFD. While Clearfield sports a Zacks Rank #1 (Strong Buy), both Applied Materials and Cisco carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearfield and Cisco are set to report their earnings results on Nov 4 and 17, respectively. Applied Material is likely to report the same on Nov 11.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Clearfield, Inc. (CLFD): Free Stock Analysis Report
Pinterest, Inc. (PINS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research