The share price of Pinterest (NYSE:PINS) has increased by 15% after the release of the business’s financial report for the third quarter. The report revealed that the firm maintained its user base despite reducing total users and exceeding analysts’ projections for sales and profit.
According to the company’s newly appointed CEO, Bill Ready, “despite the adverse macro climate, we are providing performance and a differentiated value offer to advertisers, reaching people throughout the complete funnel.”
Revenues increased by 8% to $685 million due to growth in its home markets, which offset a decrease in Europe. While sales in North America increased by 9% to a total of $575 million, European sales decreased by 4% to $86 million. Revenues from the Rest of the World increased by 36%, reaching $24 million. As a result, Pinterest stock surged in the market.
The number of monthly active users around the globe remained unchanged from the previous year at 445 million. The decrease in monthly active users (MAUs) in the United States of 3M (to 95M) was compensated for by increases in larger user bases elsewhere in the world. The MAUs in Europe gained 1% to 120M, while the MAUs in the Rest of the World rose 1% to 230M.
The average income generated by each user increased by 11%, reaching $1.56. In the United States and Canada, it increased by 15% to $6.13; in Europe, it decreased by 3% to $0.72. In the Rest of the World, the average revenue per user increased by 38% to $0.11.
After a warning about “somewhat larger foreign currency headwinds” than in the previous quarter, the Pinterest stock is forecasting an increase in fourth-quarter sales in the mid-single digits, which aligns with the consensus among analysts. In addition, it forecasts that operational expenditures would increase by a low double-digit percentage sequentially. For the whole year, it anticipates that these costs will increase by 35% year-over-year.
The Pinterest’s stock price rose 15% in the third quarter on the back of strong financial results driven by the company’s consistent user base.
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