Pinterest (PINS) – Get Report beat analysts’ expectations for its fourth-quarter earnings after the bell Thursday on a surge in revenue during the period.
Pinterest posted revenue of $705.6 million in the fourth quarter, up 76% from $400 million last year. The FactSet analyst consensus called for $645.7 million.
Net income registered $207.841 million, or 30 cents a share, in the latest quarter, swinging from a loss of $35.718 million, or 6 cents a share a year earlier. The analyst consensus called for EPS of 18 cents.
Global monthly active users grew 37% year over year to 459 million.
Pinterest shares recently traded at $83.77, up 0.08%. They climbed 0.91% in the regular trading session Thursday and have soared 116% in the past six months, as consumers have flocked to social media during the Covid pandemic.
“We welcomed over 100 million additional monthly active users to Pinterest in 2020, more than any other year in our history, and now we reach more than 450 million monthly active users around the world,” Chief Executive Ben Silbermann said in a statement.
“I’m proud of our company and the inspiration we’ve been able to bring to so many lives during a trying year.”
Prior to the earnings release, Morningstar analyst Ali Mogharabi put the fair value at $42 for the stock. “While we don’t expect Pinterest to displace online advertising behemoths Google and Facebook or up-and-coming Amazon, we do expect it to attract a small pinch of digital ad spending, which we estimate is an addressable market of nearly $500 billion,” he wrote last year.
Shares rose $6.60 or 8.5% to $84.44 in after-hours trading.