Pinterest Shares Plunge 15% after Weak Outlook

Shares of social media platform Pinterest (PINS) fell nearly 15% on Tuesday after the company reported third-quarter results that missed earnings expectations and issued weaker-than-anticipated revenue guidance for the upcoming quarter.

Pinterest posted earnings per share (EPS) of $0.38, below analysts’ forecasts of $0.42, according to StreetAccount estimates. Revenue came in at $1.05 billion, roughly in line with expectations but showing slower-than-hoped momentum in the company’s core North American market.

While Pinterest’s global sales grew 17% year-over-year, net income surged 201% to $92.1 million, up from $30.6 million in the same period last year. The platform also reported a strong increase in its user base, reaching 600 million monthly active users (MAUs) worldwide,  surpassing the consensus estimate of 590 million and rising from 578 million in the previous quarter.

However, the company’s average revenue per user (ARPU) stood at $1.78, slightly below the expected $1.79, signaling that user growth is not yet translating into higher per-user monetization.

In the U.S. and Canada, Pinterest’s largest markets, third-quarter revenue totaled $786 million, missing StreetAccount’s estimate of $799 million.

For the fourth quarter, Pinterest expects revenue to range between $1.31 billion and $1.34 billion, with the midpoint of $1.325 billion falling short of Wall Street’s average forecast of $1.34 billion. The softer guidance spooked investors, sending shares lower in after-hours trading and erasing much of the stock’s year-to-date gains.

Pinterest reported adjusted EBITDA of $306 million for the quarter, exceeding the projected $295 million, indicating stronger operational efficiency despite weaker top-line growth.

The company's CEO Bill Ready remained optimistic, emphasizing the company’s progress in artificial intelligence and product innovation.

“Our investments in AI and product development are paying off,” Ready said in a statement. “We’ve become a leader in visual search and effectively transformed our platform into an AI-powered shopping assistant for 600 million consumers.”

Analysts say Pinterest’s heavy focus on AI-driven discovery and shoppable content could support long-term growth, but short-term profitability pressures and competition from rivals such as Meta and TikTok remain key challenges.