Company's revenue growth
Pinterest ended the holiday fourth quarter with revenue growth of 76% as the COVID-19 pandemic boosted demand for digital advertising and Pinterest's advertising products were improved. The company is forecasting 70% revenue growth in the first quarter.
Shares in Pinterest (PINS), up 255.3% over the past year, rose after the close of trading on Thursday after the company released its 2020 year-end report.
In comments on the report, Pinterest executives noted a record number of new monthly active users of the app: 100 million in 2020, bringing the total audience to 450 million.
In a challenging 2020, Pinterest managed to achieve 48 percent revenue growth through constant innovation in its advertising products.
Earnings per share rose to $0.43, up from $0.12 in the same quarter of 2019, and above analysts estimates of $0.32. Quarterly earnings rose to $294.3m, up from last year's figure of $76.8m.
Revenue rose 76% to $706m, also above analysts forecast of $645.6m.
Average monthly active users grew 37% (from last year's figure) to 459 million, beating analysts expectations of 449.4 million, of which 361 million were international users and 98 million were US users.
Average revenue per user (ARPU) also rose to $1.57, above the forecast of $1.44.
Pinterest expects revenue to grow 70% in the first quarter of fiscal 2021. Management plans to continue to increase headcount, particularly to support international expansion efforts, as well as invest in the company's promotional products and brand marketing.