On Friday, Pinterest Inc . (NYSE:PINS) maintained its Buy rating from a Jefferies analyst following the release of the company's fourth-quarter results. The social media platform's revenue fell short by 1% compared to expectations, but the first quarter revenue guidance aligned with analysts' predictions, albeit below what buy-side analysts anticipated. The company's monthly active users (MAUs) exceeded forecasts by 11 million, and a new third-party partnership with Google (NASDAQ:GOOGL) was announced, which the firm cited as key positive developments.
The analyst from Jefferies expressed continued optimism about Pinterest's potential for revenue growth throughout the fiscal year 2024. Despite the revenue miss in the fourth quarter, the company's user growth and the strategic partnership with Google are seen as encouraging signs for future performance. The firm anticipates that Pinterest will experience accelerating revenue growth each quarter of the fiscal year 2024.
Pinterest reported a 9% revenue growth for the fiscal year 2023, which the Jefferies analyst suggests could be significantly surpassed in the coming year. The expectation is set for the company to close the fiscal year 2024 with at least high-teen percentage growth rates. This outlook is based on the recent positive trends in user engagement and strategic initiatives.
The social media company's performance, particularly the solid increase in monthly active users, has been highlighted as a strong indicator of its growing appeal and market presence. The partnership with Google is expected to further bolster Pinterest's position in the industry by expanding its reach and potentially creating new revenue streams.
In conclusion, the Jefferies analyst maintains a positive stance on Pinterest's stock, underpinned by the company's user growth and its new partnership. The firm's analysis suggests a trajectory of revenue acceleration for Pinterest in the fiscal year 2024, aiming to outpace the growth achieved in the previous year.
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