Pinterest (PINS) Q1 Earnings Report Preview: What To Look For

Kayode Omotosho /
2022/04/26 7:09 am EDT
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Social commerce platform Pinterest (NYSE: PINS) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Pinterest reported revenues of $846.6 million, up 19.9% year on year, beating analyst revenue expectations by 2.34%. Despite the company trading up on the results, it was a mixed quarter with impressive top-line growth but a declining number of users. The company reported 431 million monthly active users, down 6.1% year on year.

Is Pinterest buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Pinterest's revenue to grow 17.9% year on year to $572.4 million, slowing down from the 78.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.

Pinterest Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing six downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.55%.

Looking at Pinterest's peers in the consumer internet segment, only Snap has so far reported results, delivering top-line growth of 38% year on year, missing analyst estimates by 0.58%. The stock traded up 8.2% on the results. Read our full analysis of Snap's earnings results here.

Tech stocks have had a rocky start in 2022 and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 14.3% over the last month. Pinterest is down 26.9% during the same time, and is heading into the earnings with analyst price target of $37.2, compared to share price of $19.33.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.