NYSE$PINS

Pinterest Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Pinterest's Q3 2021 performance reflected revenue growth driven by retail advertisers and international expansion, offset by user engagement headwinds and CPG sector weakness.

Pinterest's Q3 2021 showed a 43% year-over-year revenue increase to $633 million, driven by retail advertisers and international growth, but was impacted by engagement headwinds and weakness in the CPG sector. Global MAUs grew 1% to 444 million. GAAP net income was $94 million, representing 15% of revenue.

  • Q3 revenue increased by 43% year-over-year, reaching $633 million, fueled by large retail advertisers and international growth.
  • Global MAUs experienced a 1% year-over-year growth, totaling 444 million, influenced by engagement headwinds as pandemic restrictions eased.
  • GAAP net income for Q3 was $94 million, which is 15% of the revenue.
  • Adjusted EBITDA for Q3 was $201 million, representing 32% of revenue.

Headline financials

Total Revenue

$633M

Previous: $443M+43.0%
EPS (adj)

$0.28

Previous: $0.13+115.4%
Global MAUs

444.0M

Previous: 442.0M+0.5%
U.S. and Canada MAUs

89.0M

Previous: 98.0M-9.2%
Europe MAUs

356.0M

Previous: 343.0M+3.8%
Global ARPU

$1.41

Previous: $1.03+36.9%
U.S. and Canada ARPU

$5.55

Previous: $3.85+44.2%
Europe ARPU

$0.38

Previous: $0.21+81.0%
Free Cash Flow

$94M

Previous: -$94.2M+199.8%
Net Income

$94M

Previous: -$94.2M+199.8%
Operating Income

$98.4M

Previous: -$97M+201.5%
Gross Profit

$506M

Previous: $330M+53.5%
Cash & Equivalents

$1.23B

Previous: $653M+88.7%
Total Assets

$3.15B

Previous: $2.3B+37.0%
Stock-Based Comp

$96.3M

Previous: $91.6M+5.1%

Revenue & EPS history

Pinterest · Revenue · Quarterly

$633M

Q3 2021+43%vs Q3 2020
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

Q4 revenue is expected to grow in the high teens percentage range year over year. Non-GAAP operating expenses are expected to grow in the low teens quarter over quarter.

Tailwinds

  • Continued investment in native content/Creator ecosystem.
  • Ongoing investment in brand marketing campaign.
  • Focus on Pinner product investments.
  • Focus on ad product investments.
  • Focus on measurement investments.

Headwinds

  • The evolution of COVID-19 and the impact of the pandemic unwind on engagement remain unknown.
  • Results, trends and outlook for the Q4 2021 period to date are preliminary, subject to change, and may not be an indication of future performance.
  • Continued investment in headcount to fund strategic initiatives.
  • Uncertainty regarding user engagement levels.
  • Potential impact of COVID-19 variants.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.0%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.4%

Avg return

30 days after

46%

13 / 28 earnings

Positive

+43.2%

Q2 2020

Best reaction

-23.2%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%+2.2%+3.8%
Q4 2025-16.8%-11.7%-1.9%
Q3 2025-21.8%-17.9%-18.7%
Q1 2025+4.6%+18.1%+22.8%
Q4 2024+19.1%+16.4%+2.1%
Q3 2024-13.6%-9.2%-4.4%
Q2 2024-14.5%-22.1%-16.5%
Q1 2024+19.8%+19.6%+22.5%
Q4 2023-9.7%-12.5%-14.5%
Q3 2023+22.7%+27.0%+36.6%
Q2 2023-3.9%-8.0%-5.2%
Q1 2023-13.6%-19.7%-8.9%
Q4 2022-3.7%-9.6%-6.3%
Q3 2022+13.0%+9.8%+13.4%
Q2 2022+14.5%+15.8%+18.3%
Q1 2022+10.3%+15.3%+6.4%
Q4 2021-0.3%-2.4%-11.5%
Q3 2021+3.4%+4.4%-19.8%
Q2 2021-23.2%-21.7%-25.3%
Q1 2021-13.6%-13.5%-16.2%
Q4 2020+6.2%+2.9%-11.7%
Q3 2020+19.0%+11.2%+32.7%
Q2 2020+43.2%+42.4%+40.3%
Q1 2020-17.3%-7.7%-1.1%
Q4 2019+15.0%+9.7%-15.5%
Q3 2019-19.5%-21.0%-24.8%
Q2 2019+15.8%+12.7%+18.7%
Q1 2019-6.7%-11.2%-4.3%
Q3 2018
Q2 2018
Q1 2018
Q4 2017

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