Pinterest shares drop after Q3 revenue and guidance miss

Pinterest shares fell over 13 percent following third-quarter earnings that missed Wall Street expectations. While revenue grew 11.9 percent year-on-year to $1.17 billion, it fell short of the $1.21 billion consensus estimate.

Despite reaching a record 661 million monthly active users, the company provided fourth-quarter revenue guidance of approximately $1.45 billion, which was below the $1.52 billion projected by analysts. This forecast implies a slowdown in growth compared to previous quarters.

Financial results showed a non-GAAP profit of $0.46 per share, missing the $0.49 estimate. Regional data indicated uneven monetization: revenue in the U.S. and Canada rose 14 percent to $894 million, whereas European revenue remained unchanged at $193 million. Additionally, the global average revenue per user increased by only 1 percent to $1.80, while the European average revenue per user declined by 7 percent.