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Pinterest Shares Slide on Q3 Earnings Miss and Softer Holiday Outlook

A slightly softer holiday outlook paired with an EPS miss overshadowed rapid user growth.

Overview

  • Revenue rose 17% year over year to $1.05 billion, while adjusted earnings were $0.38 per share versus $0.42 expected.
  • Fourth-quarter revenue guidance of $1.31 billion to $1.34 billion came in just below consensus at the midpoint, and the stock fell about 15% in after-hours trading.
  • Global monthly active users reached a record 600 million in the quarter, topping StreetAccount’s 590 million projection.
  • Management flagged tougher competition for ad budgets and noted reduced U.S. spending from Asia-based e-commerce retailers after the end of the de minimis duty exemption.
  • Pinterest highlighted strong cash generation with $322 million from operations, $318 million in free cash flow, and roughly $1.13 billion in cash, while emphasizing AI-driven visual search and its Performance+ ad suite.