(Reuters) -Pinterest’s fourth-quarter revenue forecast failed to impress investors looking for a boost from the holiday shopping season, at a time when bigger online ad sellers largely outperformed, sending the company shares down 14% in extended trading.
The company also announced a new stock buyback program of up to $2 billion and canceled the September 2023 program under which $500 million were available for repurchase.
Pinterest (NYSE:)’s results follow quarterly reports by digital ad bellwethers – including Google-parent Alphabet (NASDAQ:), Meta Platforms (NASDAQ:), Reddit and Snap – which posted upbeat third quarter revenue, helped by robust ad spending.
Pinterest released Performance+ suite in October to better target users by enhancing ad campaigns with new AI tools and automation features on the platform.
Pinterest forecast fourth-quarter revenue between $1.13 billion and $1.15 billion, the midpoint of which was in line with analysts’ average estimates of $1.14 billion, according to data compiled by LSEG.
The company’s revenue grew 18% to $898.4 million in the reported quarter, compared with estimates of $896.4 million.
Adjusted profit per share for the quarter came in at 40 cents, compared with estimates of 34 cents.
Global monthly active users on the platform rose 11% to 537 million in the July-to-September period, compared with estimates of 531.5 million.
