Pinterest has beaten analysts’ estimates for fourth-quarter earnings, as the social media scrapbooking site has enhanced user interaction and expanded internationally.
The business recently expanded into markets such as Denmark, Norway and Switzerland, attracting more consumers.
Total earnings jumped 46 per cent to $400 million in the fourth quarter, while monthly active global users surged 26% to 335 million, beating analysts’ prediction of 331.3 million.
“We have seen amazing achievement in ridding in English-speaking nations beyond the US along with the investments we have made in Western Europe are paying off well,” Chief Financial Officer Todd Morgenfeld stated to a post-earnings call.
Revenue jumped 46% in the quarter from a year earlier, to $400 million. That easily topped analysts’ forecast of $371.2 million.
Pinterest projected 2020 revenue will register up to $1.52 billion, compared to analysts’ estimate of $1.5 billion, according to Reuters.
“A strong Q4 marked the end of a year where we improved the foundation of the Pinterest app with more inspiring recommendations, faster performance and improved shopping experiences,” Ben Silbermann, Pinterest CEO, said in a statement.
Aaron Goldman, CMO at 4C Insights, said: “Pinterest continues to perform well for brands and this is reflected in media budget allocation. Advertisers using Scope by 4C in both Q4 2019 and Q4 2018 increased their spend by nearly 50% on Pinterest.
“While brands in the retail and packaged goods categories have been prevalent on Pinterest for years, we’re starting to see much more adoption from advertisers in categories like travel, financial services, entertainment, and automotive. As a scaled closed ecosystem, Pinterest stands out for its ability to provide precise targeting at key moments of inspiration.”