Pinterest Inc. stock surged in extended trading Thursday after it reported a couple of firsts: a full-year profit and more than $2 billion in annual revenue.
Pinterest PINS, -10.32% shares rose more than 28% after hours Thursday, after a 10% drop in the regular session to close at $24.49.
Chief Executive Ben Silbermann said the company will double down on its new initiatives, which helped its fourth-quarter revenue grow 20% year over year and full-year revenue climb 52% year from the previous year.
“We plan to further invest in our business as we scale the distribution of Idea Pins through our creator-led content efforts and enhance our core Pinner experience and shopping,” he said in a statement.
Despite the milestones, the online-pinboard company said its fourth-quarter global monthly active users declined 6% year over year, to 431 million, short of the 446 million analysts expected. There was a 12% drop in U.S. users, to 86 million, and a 4% drop in international users, to 346 million. Pinterest attributed the declines to lower traffic from search and continued effects of the waning of the coronavirus pandemic.
Fourth-quarter results beat expectations, though. Revenue rose to $846.7 million from $705.6 million in the year-ago quarter. Fourth-quarter net income was $174.7 million, or 25 cents a share, compared with $207.8 million, or 43 cents a share, in the year-ago period. Adjusted for stock-based compensation and other costs, earnings were 49 cents a share.
Analysts surveyed by FactSet had forecast earnings of 45 cents a share on revenue of $827.5 million.
For the full year, Pinterest reported net income of $316.4 million, or 46 cents a share, on revenue of $2.58 billion. Adjusted earnings were $1.13 a share, beating analysts’ expectation of $1.10 a share on revenue of $2.56 billion.
The company did not give a specific first-quarter forecast, but Chief Financial Officer Todd Morgenfeld said on the earnings call that he expected first-quarter year-over-year revenue growth in the “high teens.”
Shares of Pinterest are down nearly 25% so far this year, while the S&P 500 Index SPX, -2.44% has declined about 6% year to date.