Pinterest, Inc. (PINS) Stock on a Rise After Faltering on Thursday, Here’s the Reason

Pinterest, Inc. (PINS), a company providing visual discovery engines across the globe, has surged 17.75% in premarket trading session and consequently is trading at $28.86 at the time of the writing. During Thursday’s regular trading session, the stock slumped by 10.32% and closed the day at $24.51. The stock slid on the fears of abysmal quarterly results, but as the results have come out, the company posted outstanding revenues, as a result of which the stock is making headwinds in the premarket.

PINS Q4 2021 Results

In the late hours of Thursday, PINS released the results for the fourth quarter of the fiscal year 2021, which ended 31st December 2021. The company said that it had generated terrific revenues of $846.6 million during the quarter against $705.6 million for the same quarter of fiscal 2020. The total costs and expenses bore by the company during the said three-month period were $667.2 million, while against that, the costs and expenses for the same three-month period of 2020 were $500.4 million. The net income generated by the company during the period was $174.6 million (or the net income of $0.27 and $0,25 per basic and diluted share) against the net income of $207.8 million (or $0.34 and $0.30 per basic and diluted share) for the same period of 2020.

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Guidance for Q2 2022

PINS also released the guidance for the first quarter of fiscal 2022. The company believed that the revenue for the said period would grow in high teen percentage points on a year-over-year basis. The non-GAAP operating expenses for the three months are expected to grow at 10% on a quarter-over-quarter basis. The company expected the full year 2022 non-GAAP expenses to grow by some 40%.

Executive Commentary

Ben Silbermann, CEO, and co-founder of PINS, while commenting on the results said that the company has taken some important steps during fiscal 2021 which have served the purpose of increasing the company’s revenue by over $2 billion during the year. Looking ahead towards 2022, the company plans to further invest in its business as it is scaling the distribution of Idea Pins, which in turn would make Pinterest a solid destination for inspiration on the internet.

Future Outlook for PINS

During the last three months, PINS stock has declined by approximately 45%, owing to both market-related and company-specific reasons. Looking forward, the stock has got several negative signals at this point, and hence, is expected to perform weakly in the next couple of weeks.

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