On October 30, 2023, Pinterest Inc (PINS, Financial) released its Q3 2023 earnings report, showing strong revenue growth and a positive net income. The company's revenue grew 11% YoY to $763 million, driven by an 8% YoY increase in Global Monthly Active Users (MAUs) to 482 million. The company also reported a GAAP net income of $7 million, a significant turnaround from the net loss reported in the same period last year.
Financial Highlights
The company's Q3 2023 financial results show a strong performance in revenue and net income. The revenue of $763 million represents an 11% YoY growth, while the GAAP net income of $7 million marks a significant improvement from a net loss in the same period last year. The company's adjusted EBITDA was $185 million for Q3, showing a strong margin expansion.
CEO of Pinterest, Bill Ready, commented on the results,
We continued to accelerate the business in Q3. We are driving strong revenue performance, robust global MAU growth, and substantial margin expansion. As we lean into Pinterest’s unique differentiators as a visual search, discovery, and shopping platform, we’re finding our best product market fit in years."
Revenue and User Growth
Pinterest's revenue growth was driven by an increase in Global MAUs, which reached a record high of 482 million, an 8% YoY increase. The company's revenue from the U.S. and Canada grew by 8%, while revenue from Europe and the rest of the world grew by 33% and 29% respectively. The company's Average Revenue Per User (ARPU) also saw growth across all regions.
Balance Sheet and Cash Flow
As of September 30, 2023, Pinterest had cash and cash equivalents of $1.17 billion and marketable securities of $1.16 billion. The company's total current assets stood at $3.04 billion. On the liabilities side, the company had total current liabilities of $304 million. The company's net cash provided by operating activities for the first nine months of 2023 was $354.68 million.
Outlook
For Q4 2023, Pinterest expects revenue to grow in the 11-13% range YoY. The company also expects Q4 2023 Non-GAAP operating expenses to decline in the 9-13% range YoY.
Explore the complete 8-K earnings release (here) from Pinterest Inc for further details.
