February 8, 2023: On Monday, Pinterest shares slipped in extended trading after the company reported earnings that missed analyst anticipations and issued a prediction for the initial quarter. The stock pared its losses after falling by as much as 12% earlier.

Pinterest expects sales in the first quarter to increase in the “low single digits” from before a year. Analysts were anticipating growth of 6.9% to $614.8 million.

The firm stated that its chief financial head and director of business operations, Todd Morgenfeld, will exit the organisation on July 1, 2023.

Earnings in Pinterest’s fourth quarter increased 4% every year to $877 million, while total sales for 2022 increased 9% year-over-year to $2.8 billion.

Pinterest recorded a net income of $17 million in the fourth quarter but a net loss of $96 million for the entire year.

The group said its global monthly active users rose 4% year-over-year to 450 million. ARPU’s average revenue per user for the U.S. and Canada region increased 6% in the fourth quarter to $7.60.

“While the industry as a whole is meeting headwinds, we are adjusting quickly to a changing macro environment and are committed to making a positive online background for our users and advertisers,” Pinterest CEO Bill Ready expressed in a statement.

Pinterest’s fourth-quarter earnings come following many ad-supported companies’ reported tepid results.

In the previous year, Meta said that its fourth-quarter sales dropped 4% every year to $32.2 billion, while Alphabet’s Google ad business has recorded $59 billion in fourth-quarter earnings, a 3.6% drop from the same quarter last year. Additionally, payments in Alphabet’s YouTube unit plunged 8% yearly to $7.96 billion in the fourth quarter.

Snap stated that the last quarter’s sales were slightly up yearly to $1.3 billion, which missed analyst anticipations of $1.31 billion.

Amazon’s digital advertising unit showed a bright spot during the last quarter, with sales in that unit leaping 19% to $11.6 billion.

Pinterest laid off nearly 150 employees last week, joining the growing list of technology firms such as Meta, Alphabet and Salesforce that have fired workers in recent months.

Ready joined Pinterest in June 2022, which comes with longtime CEO and co-founder Ben Silbermann.