Pinterest Shares Drop in After-Hours as Q4 Guidance Falls Short Despite Q3 Beat

Pinterest Stock Plummets After-Hours on Weaker Q4 Guidance

Pinterest Inc. faced a sharp decline in after-hours trading on Thursday, dropping over 15% as the company’s softer-than-anticipated Q4 guidance overshadowed its solid Q3 performance.

Q3 Earnings Beat Estimates

For Q3, Pinterest reported adjusted earnings per share (EPS) of $0.40, outperforming analyst expectations of $0.34. The company’s revenue hit $898.4 million, surpassing the forecasted $896.9 million. Despite these positive results, global monthly active users (MAUs) declined by 11% year-over-year to 537 million. However, average revenue per user (ARPU) increased by 5% to $1.70, highlighting Pinterest’s growth in monetization per user.

Disappointing Q4 Guidance

Looking ahead, Pinterest provided a more cautious outlook for Q4. The company anticipates revenue between $1.125 billion and $1.145 billion, with a midpoint of $1.135 billion, slightly below analyst expectations of $1.145 billion. This conservative guidance has raised concerns among investors, contributing to the sharp after-hours stock drop.

Pinterest's mixed outlook comes amid intensifying competition and evolving user engagement trends, leaving investors questioning the platform’s long-term growth trajectory.