Pinterest's fourth-quarter revenue fell short of expectations, with a full-year loss of $96 million!

It is learned that on February 6, the US social platform Pinterest reported that its fourth-quarter revenue was lower than expected due to the weak advertising market, and it faced many challenges along with its peers Alphabet and Snap.

The financial report shows that in the fourth quarter of 2022, Pinterest's revenue was US$877 million, lower than the market expectation of US$886.3 million; diluted earnings per share were 29 cents, lower than the market expectation of 27 cents.

Pinterest said it expects revenue to rise by a "low single digit" in the first quarter of 2023 from a year earlier. Analysts expected it to grow 6.9% to $614.8 million.

Pinterest's revenue in the fourth quarter increased 4% year-on-year to $877 million, while total sales in 2022 increased 9% year-on-year to $2.8 billion; it recorded a net income of $17 million in the fourth quarter and a net loss of $96 million for the full year.

The company said that it now has 450 million monthly active users worldwide, up 4% year-over-year, while average revenue per user (ARPU) in the United States and Canada grew 6% to $7.6 in the fourth quarter.

“While the entire industry faces headwinds, we are quickly adapting to the changing macro environment and are focused on creating a more positive online experience for our users and advertisers,” Pinterest CEO Bill Ready said in a statement.

The company also said its chief financial officer and head of business operations, Todd Morgenfeld, will leave on July 1, 2023. Its chief marketing and communications officer, Andréa Mallard, and chief financial officer will now report directly to Bill Ready.

Before Pinterest, many advertising companies also reported tepid fourth-quarter earnings. Meta reported last week that its fourth-quarter sales fell 4% year-on-year to $32.2 billion; Alphabet's Google advertising business had fourth-quarter revenue of $59 billion, down 3.6% from the same period last year; Alphabet's YouTube division's fourth-quarter revenue fell 8% year-on-year to $7.96 billion; Snap's fourth-quarter sales, although slightly up year-on-year to $1.3 billion, did not meet analysts' expectations of $1.31 billion.

Just last week, Pinterest announced plans to lay off about 150 employees to reduce operating costs, joining a wave of layoffs at tech companies such as Alphabet and Salesforce in recent months.

Editor ✎ Nicole/

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