Pinterest Pins Stock Before Monday Q1 Report After Revenue Miss
Pinterest pins stock heads into Monday’s after-market-close Q1 report after the company missed revenue estimates last quarter and followed with guidance that also came in below expectations. The stock has climbed 11.2% over the last month, but investors will get a fresh read on whether that move is backed by the next set of numbers.
Pinterest’s $1.32 billion quarter
Last quarter, Pinterest reported $1.32 billion in revenue, up 14.3% year on year, while monthly active users reached 619 million, a 11.9% increase. Those user and sales figures show the platform still added scale, even as Wall Street focused on the revenue miss and the softer outlook that followed.
The next quarter’s revenue guide and EBITDA (earnings before interest, taxes, depreciation, amortization) guidance both missed analysts’ expectations significantly last quarter. That combination left a harder bar for Monday’s print, because the upcoming report has to prove that growth can hold up without another slip in the top line or margin outlook.
Analysts hold estimates steady
Over the last 30 days, the majority of analysts covering Pinterest have reconfirmed their estimates. The market is looking for revenue growth of 12.8% this quarter, below the 15.5% pace Pinterest posted in the same quarter last year, which means any disappointment would hit against a slower baseline than the company delivered a year ago.
Pinterest has missed Wall Street’s revenue estimates multiple times over the last two years, so the Monday report carries more weight than a routine quarterly update. If the company matches or clears the current consensus, it would interrupt that pattern; if it falls short again, the last month’s 11.2% share gain could prove hard to defend.
Consumer internet peers set pace
11.1% was the average gain for consumer internet shares over the last month, and Pinterest’s 11.2% rise put it just ahead of the group. Reddit’s Q1 results delivered 69.1% year-on-year revenue growth and an 8.8% beat on estimates, while Meta reported revenue up 33.1% and beat by 1.4%, setting a high bar for the segment.
Reddit traded up 12.5% after its results, while Meta was down 9.2%, a split that shows the market is rewarding some reports and punishing others with little middle ground. Pinterest closed the setup at $20.29 a share, below the $23.16 average analyst price target, so Monday’s numbers will decide whether the stock narrows that gap or stays trapped under it.
