What happened
Shares of visual search and media company Pinterest (PINS +1.19%) jumped on Friday. The stock rose as much as 11.1%, but shares were up about 5% as of 10:20 a.m. EST.
The growth stock's big gain follows a stronger-than-expected fourth-quarter report.
Image source: Getty Images.
So what
Pinterest announced fourth-quarter revenue of $706 million, up 76% year over year and crushing analysts' average forecast for revenue of $645.6 million. Adjusted earnings per share similarly beat analysts' estimates, coming in at $0.43, up from $0.12 in the year-ago quarter and $0.10 higher than a consensus analyst forecast for $0.32.
Monthly active users grew 37% year over year to 459 million.
Management cited "continued product innovation, execution, and an earlier and longer holiday season" as key reasons for Pinterest's strong performance.
Now what
Pinterest is optimistic about the future, with management guiding for first-quarter revenue to increase in "the low-70% range year over year." For some context, the company's fourth-quarter growth and its guidance for first-quarter growth are well beyond the 58% year-over-year growth rate Pinterest delivered in the previous quarter.
