NYSE$PINS

Pinterest Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Pinterest's Q4 2020 earnings exceeded expectations driven by strong holiday advertiser demand and investments in ad products and international expansion.

Pinterest's Q4 2020 saw significant growth with revenue increasing by 76% year-over-year to $706 million. The company's MAUs also grew by 37% year-over-year to 459 million. GAAP net income was $208 million, a significant improvement from the net loss in the same period of the previous year.

  • Q4 revenue grew 76% year-over-year to $706 million.
  • Monthly Active Users (MAUs) increased 37% year-over-year to 459 million.
  • GAAP net income for Q4 was $208 million.
  • Adjusted EBITDA for Q4 was $299 million.

Headline financials

Total Revenue

$706M

Previous: $400M+76.4%
EPS (adj)

$0.43

Previous: $0.12+258.3%
Global MAUs

459.0M

Previous: 335.0M+37.0%
U.S. and Canada MAUs

98.0M

Previous: 88.0M+11.4%
Rest of World MAUs

361.0M

No prior period
Global ARPU

$1.57

Previous: $1.22+28.7%
U.S. and Canada ARPU

$5.94

Previous: $4.00+48.5%
Rest of World ARPU

$0.35

Previous: $0.21+66.7%
Net Income

$208M

Previous: -$35.7M+682.3%
Operating Income

$205M

Previous: -$43.2M+575.0%
Gross Profit

$577M

Previous: $304M+89.9%
Cash & Equivalents

$669M

Previous: $650M+3.0%
Total Assets

$2.61B

Previous: $2.39B+9.0%
Stock-Based Comp

$86.2M

Previous: $112M-23.2%

Revenue & EPS history

Pinterest · Revenue · Quarterly

$706M

Q4 2020+76.4%vs Q4 2019
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Forward guidance

Pinterest anticipates Q1 2021 revenue to grow in the low-70% range year-over-year. The company plans to invest in content, the Pinner experience, advertiser success, and shopping.

Tailwinds

  • Revenue growth expected in the low-70% range year-over-year for Q1 2021.
  • Continued focus on content improvement to inspire users.
  • Deepening the Pinner experience with better planning tools.
  • Helping advertisers succeed with improved automation and measurement.
  • Making Pinterest more shoppable to ease product discovery and purchase.

Headwinds

  • Uncertainty remains due to the ongoing COVID-19 pandemic.
  • Investments in strategic priorities may impact short-term profitability.
  • International expansion efforts will require increased headcount and resources.
  • Scaling comprehension and brand marketing efforts will add to expenses.
  • Competition in the social media and advertising space remains intense.

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 Q4 2020

Historical avgQ4 2020

+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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