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Will Pinterest Stock Finally Go Up?

By Neil Rozenbaum – Nov 5, 2021 at 12:00PM

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Unlike in Q2, the market seemed interested less in monthly active users and more in the potential of shopping on the platform.

In this video, I will go over Pinterest's (PINS -3.07%) Q3 earnings report and talk about all the current and future product developments the company is working on. Overall, it was a much better quarter than last year's, and there was a show of confidence from management. You can find the video below, but here are some of the highlights.

Earnings summary

The company reported Q3 revenue of $633 million, up 43% year over year (YOY). Global monthly active users (MAUs) grew just 1% YOY to 444 million.

  • US revenue grew 33% to $498 million and international revenue grew 96% to $135 million. 
  • The company expects that Q4 revenue will grow in the high-teens percentage range year over year.
  • US MAUs decreased 10% to 89 million while international MAUs grew 4% to 356 million. 
  • In 2022, Pinterest will enter three new Latin American markets as well as Japan. This will certainly boost engagement on the platform.
  • Average revenue per user (ARPU) keeps growing, but there's still so much potential in the monetization of international users. US ARPU grew 44% YOY, reaching $5.55, while international ARPU grew 81% to just $0.38. 
  • The main reason international ARPU is still so low is that Pinterest doesn't monetize around 50% of those international markets. 
  • Shopping on the platform is coming. The company is beta testing native checkout in Q4 with the likes of Shopify

There were more positive signs with regards to shoppable Pins. The number of Pinners engaging with shopping surfaces was up more than 20% sequentially and up 60% YOY. Overall product searches were up over 100% from last year with searches on the Shop tab by Gen Z Pinners increasing over 200%. This to me shows the tremendous potential a platform like Pinterest has, not just for users and creators but for advertisers as well. 

For the full insights, do watch the video below, and consider subscribing. 

*Stock prices used were the closing prices of Nov. 4, 2021. The video was published on Nov. 5, 2021.

Neil Rozenbaum owns shares of Pinterest. The Motley Fool owns shares of and recommends Pinterest. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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