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.