Key metrics to watch when Pinterest (PINS) reports Q4 results

Pinterest Inc. (NYSE: PINS) is slated to report fourth quarter 2019 earnings results on Thursday, February 6, after the market closes. Analysts have forecast earnings of $0.08 per share on revenue of $371.5 million.

The company’s topline results are expected to benefit from growth in users and average revenue per user (ARPU). Last quarter, global monthly active users (MAUs) grew 28% to 322 million while global ARPU grew 14% to $0.90. MAUs grew 8% in the US and 38% internationally. ARPU rose 26% in the US and 127% internationally.

Pinterest is expected to see continued strength in its advertising business. The company’s efforts in improving its features around targeting and measurement is expected to drive growth. Pinterest is also likely to benefit from its expansion into new markets.

However, the company continues to face tough competition in advertising from Facebook (NYSE: FB) and Twitter (NYSE: TWTR). In addition, although ARPU has grown significantly in international markets, the monetization rate is lower in these regions.

In the third quarter of 2019, Pinterest beat earnings expectations, achieving a profit of $0.01 per share despite forecasts for a loss of $0.04 per share. Revenues rose 47% to $280 million but fell slightly below estimates of $281 million.

Also read: Snap Q4 2019 Earnings Preview

For the full year of 2019, Pinterest expects total revenues to grow 46-48% to a range between $1.10 billion and $1.11 billion.

Shares of Pinterest have gained 10% over the past three months and 23% in the past one month. The stock has an average price target of $27.67.

Pinterest’s rival Snap (NYSE: SNAP) will report fourth quarter 2019 results today after the market closes.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!