Pinterest Inc (NYSE:PINS). delivered forecast-beating profit and revenue growth for the third quarter and was upbeat on the outlook for the final three months.
The digital pinboard company, which has been the target of takeover speculation involving PayPal (NASDAQ:PYPL) Holdings Inc, said revenue grew 43% year-on-year to US$633mln, above the market consensus for US$630.9mln.
It swung to a net income of US$93.9mln from a US$94.2mln loss last year.
Adusted earnings per share of 28 cents beat analysts’ expectations of 23 cents.
Global Monthly Active Users (MAUs) grew by 1% year-on-year to 444mln. As of November 2, US MAUs were approximately 89mln and global MAUs around 447mln, the company said.
It forecast revenue percentage growth in the high teens for the fourth quarter, while operating expenses are estimated to grow in the low teens quarter-over-quarter as it continues to invest in its business.
“Our key strategic priorities for 2021 remain anchored in content, Pinner experience, advertiser success and shopping. We plan to continue investing in these this year,” Pinterest said.
R&D efforts will continue to focus on Pinner product, ad product and measurement investments, and the company also plans to increase its headcount further to fund strategic initiatives.
“We think these investments will support long-term growth and continue to build the foundations for a scaled business over time,” it concluded.
Media reports that PayPal (NASDAQ:PYPL) was mulling a US$45bn bid for Pinterest was denied by the financial technology company last month.
“In response to market rumours regarding a potential acquisition of Pinterest by PayPal, PayPal stated that it is not pursuing an acquisition of Pinterest at this time,” PayPal said in a statement on 25 October.
Pinterest shares fell 2.33% to US$43.64.