Source: CNBC
Summary
Pinterest reported fourth-quarter earnings that fell short of expectations, with revenue of $877 million, below the expected $886 million. However, the company saw an increase in monthly active users, reaching 445 million, up 4% year-over-year. Average revenue per user also rose 8% to $1.96. Pinterest’s net loss narrowed to $143 million from $161 million in the same period a year ago.
Our Reading
The launch follows a familiar script.
Pinterest’s earnings miss is just another chapter in the ongoing saga of social media companies struggling to meet expectations. “Higher-than-expected usage” is just a nice way of saying “we’re not growing as fast as we thought.” The company’s net loss narrowed, but that’s not exactly something to brag about. And let’s be real, an 8% increase in average revenue per user is just a fancy way of saying “we’re making a little more money off the same users.”
The real question is, how long can Pinterest keep this up before investors start to lose patience? The company’s stock is already tumbling, and it’s hard to see how this earnings report is going to turn things around.
Pinterest’s Earnings Miss: A Familiar Story
Pinterest’s earnings report is just the latest in a long line of social media companies struggling to meet expectations. It’s a familiar story: high hopes, followed by disappointing results, and then a scramble to reassure investors that everything is going to be okay.
The Usual Suspects
The usual suspects are to blame: increased competition, ad market uncertainty, and the ever-present threat of regulatory scrutiny. But let’s not forget the real reason: Pinterest is just not growing as fast as it used to.
A Glimmer of Hope?
But hey, at least Pinterest’s monthly active users are up 4% year-over-year. That’s something, right? And average revenue per user is up 8%. That’s not nothing.
The Bottom Line
The bottom line is that Pinterest’s earnings miss is just another reminder that social media companies are not invincible. They’re subject to the same market forces as everyone else, and they’re going to have to start delivering if they want to keep investors happy.
Author: Evan Null
