"Pinterest's fourth-quarter revenue jumped 14.3% year over year to $1.3 billion, the social media company announced Thursday. Full-year revenue increased 15.8% from a year earlier to $4.2 billion. The company's Q4 net income plummeted 85% from a year prior to $277 million. Its full-year net income dropped 77.6% to $416.9 million. In a call with analysts, Pinterest CEO Bill Ready attributed the company's Q4 earnings results, in part, to retailers reducing ad spend due to tariffs."
"In its fourth quarter, the company's global monthly active users rose 12% year over year to 619 million. During an earnings call with analysts, Ready said the company in Q4 concentrated on major retailers, because they offer shoppers a broad selection of products. This strategy has been effective as reflected in our user and engagement trends and in our ad supply with paid clicks to advertisers up roughly fivefold over the last three years, Ready said."
"While that strategy contributed to the company's user and engagement growth, it also left Pinterest more exposed to large retailers' struggles compared to other social platforms, Ready explained during the call. We're not satisfied with our Q4 revenue growth, and we are moving with urgency to close the gap, he said. Many of the largest retailers have been disproportionately impacted by tariffs and have been pulling back on advertising spend across the industry as they seek to protect their margins, Ready said."
Pinterest's fourth-quarter revenue rose 14.3% year over year to $1.3 billion, and full-year revenue increased 15.8% to $4.2 billion. Q4 net income fell 85% to $277 million, and full-year net income declined 77.6% to $416.9 million. Global monthly active users grew 12% year over year to 619 million. The company focused on major retailers in Q4 to offer broader product selection, boosting user engagement and paid clicks roughly fivefold over three years. Reliance on large retailers increased exposure to tariff-related ad spending cuts, prompting plans to accelerate growth among mid-market, small and international advertisers. The company plans to move with urgency to close the revenue gap.
Read at www.retaildive.com
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