Pinterest Stock Price Surged 16.06% on Upbeat Q3 FY23 Earnings

The Pinterest Inc (NYSE: PINS) stock price surged 16.06% after unveiling its third-quarter financial results for the three months that ended September 30, 2023. Pinterest reported a significant 11% increase in third-quarter revenue compared to the same period the previous year.

The company's revenue for Q3 reached an impressive $763.2 million, reflecting its ongoing success in attracting users and monetising its platform effectively, marking an 11% improvement from the $684.6 million in revenue recorded in Q2 2022.

The platform continues to attract a growing audience, with Global Monthly Active Users (MAUs) experiencing an 8% year-over-year increase. As of Q3 2023, Pinterest had a substantial user base of 482 million individuals. The expansion is indicative of the platform's enduring appeal and its ability to connect users with valuable content and experiences.

Regarding financial performance, Pinterest reported a GAAP net income of $6.73 million for Q3, representing a 110% gain from the $65.18 million loss recorded in a similar period last year. Furthermore, the company achieved an Adjusted EBITDA of $185 million during the same period versus $77 million in Q3 2022. 

This solid financial performance underscores Pinterest's ability to manage costs efficiently while driving profitability. Pinterest's commitment to prudent financial management is evident in its total costs and expenses for Q3, which amounted to $768 million. 

The above figures reflect the company's dedication to balancing investing in growth and managing expenses to achieve sustained profitability. The financial performance positions Pinterest as a strong player in the digital space, demonstrating its capacity to continue delivering value to users and investors.

The third-quarter results not only highlight Pinterest's impressive revenue growth and expanding user base but also underscore the company's efforts in achieving profitability and efficient cost management. 

Bill Ready, CEO of Pinterest, said: “We continued to accelerate the business in Q3. We are driving strong revenue performance, robust global MAU growth, and substantial margin expansion. As we lean into Pinterest’s unique differentiators as a visual search, discovery, and shopping platform, we’re finding our best product market fit in years. Our users are engaging deeply, and we’re delivering better results for advertisers through improved measurement and innovation across the full funnel. We’re making significant progress and are continuing to execute on the opportunity ahead.”

Pinterest stock price. 

The Pinterest stock price surged 16.06% to trade at $29.15 from Monday’s closing price of $25.10.