Shares of Pinterest Inc. (PINS) went further down after hours, just a day before its earnings release. The company will be announcing its Q4 and fiscal 2021 results on Thursday, February 03, after the close of business.
During regular trading, the stock remained in the red with a loss of 8.93% at its closing price of $27.33. PINS slid further down in the after-hours to lose 9.44% at 1.22 million shares. Hence, the stock was trading at $24.75 per share in the after-hours on Wednesday.
More About PINS and its Movement
The pinboard-style photo-sharing website operator, Pinterest Inc. was founded in 2008. Currently, the company has a market capitalization of $19.57 billion with its 562.7 million shares outstanding. PINS stock presently stands at a year-to-date loss of 24.81%. Furthermore, in the past year, the stock suffered a huge loss of 64.57%.
Reasons for PINS’ Downfall
PINS stock’s recent downfall can be attributed to multiple reasons. These include the following:
CRO Departure
Recently, reports emerged that Chief Revenue Officer and sales head Jon Kaplan had left the company. Mr. Kaplan had been Pinterest Inc.’s (PINS) CRO since 2016, before which he worked as an executive with Google. The reports further suggest that the company’s Global Head of Mid-Market & Small Business Sales, Bill Watkins will take the position of CRO. Hence, the departure of Mr. Kaplan from the company caused the stock to the tank on Wednesday.
Market Situation
Moreover, the ongoing frenzy in the market over recent and upcoming earnings of social media and growth tech stocks also played a role in the stock’s downfall. As Facebook’s growth declined in its recent earnings, most social media stocks took a hit. With the negative anticipation towards the company’s upcoming earnings, along with overall gloominess in the market, PINS went down in the after-hours on Wednesday.
Q3 2021 Financial Analysis
On November 04, the company announced its financial results for the third quarter ended September 30, 2021.
In the third quarter of 2021, PINS reported revenue of $632.9 million against $442.6 million in the year-ago quarter. This shows an increase of 43% year over year.
Further, the company had a non-GAAP net income of $190.5 million in Q3 2021, against $87.1 million in Q3 of 2020. Therefore, marking a huge increase of 119% year over year.
Additionally, the Global MAU’s increase by just 1% year over year and global ARPU by 37% year over year.