Pinterest's stock price drops after weak Q4 revenue forecast.

• Pinterest reported third-quarter earnings that beat on the top and bottom lines.
• The company's fourth-quarter revenue guidance of between $1.125 billion and $1.145 billion fell short of analyst estimates of $1.143 billion, with the midpoint of the range being $1.135 billion.
• Pinterest's quarterly expenses increased by 17% from $768 million to $904 million.

Despite beating on the top and bottom lines with its third-quarter earnings, shares of the social media company plunged 15% on Thursday after it provided soft guidance for its fourth-quarter revenue.

Here's how the company performed, according to LSEG:

• Revenue: $898 million vs. $896 million expected
• Earnings per share: 40 cents adjusted vs. 34 cents expected

The company's fourth-quarter revenue guidance of $1.135 billion fell short of analyst estimates of $1.143 billion.

Pinterest announced on Thursday that its board approved a $2 billion share buyback.

Pinterest's third quarter sales increased by 18% compared to the previous year, reaching $919.8 million.

In the third quarter, Pinterest reported 537 million global monthly active users, surpassing analyst predictions of 532.6 million.

The company's net income increased by 354% year over year to $30.56 million, while its total cost and expenses for the quarter rose by 17% to $904 million from $768 million the previous year.

Pinterest's latest quarterly earnings coincided with the recent U.S. presidential election and multiple earnings reports from other tech companies with online advertising businesses.

In the third quarter, Meta's ads business grew 19% year over year to $14.3 billion, while its third-quarter sales rose 19% year over year to $40.59 billion. However, Meta's shares dropped slightly on weaker-than-expected user numbers and warned of a significant acceleration in its infrastructure expenses in 2025.

During its third-quarter earnings last week, the company announced that advertising sales in the period grew 10% year over year to $65.85 billion, while its YouTube video unit reported ad revenue of $8.92 billion, up 12% from the previous year.

Microsoft's search and news advertising revenue increased by 18% year over year, according to its latest earnings report, but the company does not disclose the specific quarterly sales figures for that unit.

Last week, Reddit and Snap reported their third-quarter earnings, with Reddit's sales increasing by 68% to $348.4 million from the previous year, while Snap's revenue grew by 15% year over year to $1.37 billion.

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