What happened
Shares of Pinterest (PINS 0.67%) rocketed higher on Thursday following the visual discovery engine's blockbuster third-quarter results. As of 2:15 p.m. EDT, Pinterest's stock was up more than 28%.
So what
Pinterest's revenue surged 58% year over year to $443 million, fueled by a 37% jump in global monthly active users (MAUs) to 442 million. The gains were driven by strong growth in international markets as well as a shift in advertising spending to online channels during the coronavirus pandemic.
"More than ever before, people are coming to Pinterest to get inspiration for their lives -- everything from planning early for a socially distant Halloween to creating great home schools for their kids," CEO Ben Silbermann said in a press release.
Investors bid up Pinterest's stock price on Thursday following its Q3 financial report. Image source: Getty Images.
Better still, Pinterest's profitability improved dramatically. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $93 million, up from less than $4 million in the year-ago period. Pinterest's adjusted earnings per share (EPS), meanwhile, rose to $0.13 from $0.01. That was well ahead of Wall Street's estimates for adjusted EPS of $0.03.
Now what
Management sees more good times ahead. The company expects growth to accelerate in the fourth quarter, with revenue rising by 60%. "We're extremely pleased with the broad-based strength of our business, driven by recovering advertiser demand as well as positive returns from our investments in advertiser products and international expansion," Chief Financial Officer Todd Morgenfeld said.
