Pinterest Announces Q3 2024 Financial Results
Intellectia.AI
Pinterest, Inc. reported its Q3 financial results for the quarter ended September 30, 2024. This earnings release outlines key financial metrics, revenue performance, operational highlights, and future guidance for the company.
Key Financial Metrics (in millions, except per share data)
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $898.4 | $763.2 | +18% | $896.35 |
Pinterest exceeded Wall Street revenue expectations for the quarter. The reported revenue of $898.4 million reflects an 18% year-over-year increase compared to the same period in 2023, driven by growth in user engagement and demand from advertisers.
Revenue Performance by Segment (in millions)
| Region | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change |
|---|---|---|---|
| United States | $719.5 | $619.4 | +16% |
| Europe | $136.6 | $113.8 | +20% |
| Rest of the World | $42.3 | $30.6 | +38% |
The company experienced robust growth across all major geographic segments, with the Rest of the World showing the highest year-over-year growth at 38%.
Key Developments and Operational Highlights
- Monthly active users (MAUs) were 537 million, up 11% compared to Q3 2023.
- Adjusted EBITDA was $242.1 million for the quarter, up 31% year-over-year.
- Legal expenses included a $34.7 million settlement related to early development litigation, recorded net of insurance proceeds.
Management Commentary
Management emphasized Pinterest's ongoing investments in platform personalization and relevance, directly contributing to the increased user growth and improved engagement metrics. The focus remains on building diversified monetization strategies to leverage the growing active user base.
Dividends and Share Repurchase Program
- On September 16, 2023, the board authorized a stock repurchase program of up to $1 billion, under which $500 million remained available at the end of Q3 2024.
- This program was replaced in November 2024 with a new $2 billion stock repurchase authorization, effective as the September 2023 program was canceled.
Forward Guidance
No specific forward guidance figures were provided for the upcoming quarter.
Stock Price Movement
Following the release of its earnings report, Pinterest's stock price increased by approximately 0.98%.
Overall, Pinterest showcased solid financial health in the third quarter of 2024, supported by increased user engagement and geographical expansion in advertising revenue. The company's emphasis will be on sustaining growth through product innovation and strategic investments in personalized content.
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