Pinterest Soars Higher as Company Adds a Record 100 Million+ Users for the Year

Shares of online pinboard company Pinterest were heading higher this week after the company posted a solid fourth quarter.

Shares gained over 5% on Thursday and even as much as 10% in after-hours trading after the company announced that it had added a record 100 million+ users for the year and posted a 76% YOY growth for the fourth quarter.

Pinterest reported that its global monthly active users increased 37% year over year to 459 million. The company reported fourth-quarter 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 hit $705.6 million compared to the $399.9 million posted in the year-ago quarter. Analysts surveyed by FactSet were waiting for earnings of 34 cents a share on revenue of $645.7 million.

For the full year, the company had reported a loss of 22 cents a share on revenue of $1.69 billion. Analysts had forecast a loss of 35 cents a share on $1.6 billion in revenue.

According to Pinterest’s Chief Financial Officer Todd Morgenfeld, it was a “remarkable year of growth” that “continued product innovation, execution and an earlier and longer holiday season.”

Chief Executive Ben Silbermann said the company plans new technology and products “to improve how folks explore and find products they love with tools… [to] visualize and plan,” besides investing in automated ad tools.

Looking ahead, Morgenfeld said he expects first-quarter revenue to grow about 70% year over year, but said he would be “keeping an eye on the impact of COVID on engagement.” This may affect the company negatively if restrictions ease up.

Morgenfeld also warns that a change in Apple’s operating-system update, which will allow users to opt out of some targeted advertising could affect Pinterest.

Shares of Pinterest have risen 17% year-to-date.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.