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52 Week Highs For Unsung Social Stock As Earnings Beat Drives Analyst Upgrades

Analyst Team trader
Updated 2 May 2024

Pinterest, Inc. (NYSE: PINS) has delivered a glowing report card for the first quarter of 2024, breezing past the market estimates on both the top and bottom lines. The visual discovery engine witnessed a surge in its net sales, which climbed to an impressive $740 million, representing a 12% year-over-year growth. This increase is further accentuated by the global monthly active users (MAUs) staggering 12% jump to reach 518 million, revealing an expanding user base that's engaging more with the platform.

On the bottom line, Pinterest demonstrated substantial financial health with its non-GAAP net income rocketing to $139.5 million, or 20 cents per share. This marks a significant upswing from the $57.7 million, or 8 cents per share, recorded in the corresponding quarter the previous year. Such an uptick in profitability underscores the company's effective strategies and robust operational execution.

Continuing this financial strength, Pinterest reported that its cash-from-operating activities doubled in the first quarter to $356.1 million, compared to $183.5 million in the prior-year period. As of March 31, 2024, the firm’s cash reserves, including cash and cash equivalents, were bountiful at $1.63 billion, suggesting a solid liquidity position to support its future investments and growth plans.


Analysts View on (NYSE:PINS)

  • Bernstein have raised the (NYSE:PINS)'s price target on Pinterest to $38 from $35. The firm have kept a Market Perform rating on the shares following Pinterest's quarterly results. Revenues were comfortably above management's predictions at +23% year-over-year to $740M. North America is responsible for most of the sales.
  • Piper Sandler have raised their price target on Pinterest to $50 from $48 and keeps an Overweight rating on the shares. Piper Sandler agrees that the revenue growth of +23% year-over-year well exceeded expectations of 17% year-over-year. The earnings results were impressive and driven by both lower-funnel 1P DR product adoption and 3P partnership contribution, Piper adds. Pinterest remains the firm's top SMID-cap idea.
  • Seaport Research raised the firm's price target on Pinterest to $49 from $47 and keeps a Buy rating on the shares. With strong Q1 results, the revenues have continued to accelerate above guidance. Pinterest's strength from lower funnel deep link ads has been part of their success the analyst tells investors. Seaport Research remains positive on the NYSE:PINS due to the uniqueness of the platform, expected continued strong engagement trends, being early in monetisation, and expected mid-high teens long term revenue growth.
  • RBC Capital raised the firm's price target on Pinterest to $52 from $48 and keeps an Outperform rating on the shares. RBC have reported a “breakout quarter” with impressive revenue and EBITDA for Q1 and Q2 outlook, the analyst tells investors in a research note. Pinterest's direct links are working, with advertisers spending more as they see better return on ad spend, or ROAS, RBC adds.
  • UBS raised the firm's price target on Pinterest to $52 from $48 and keeps a Buy rating on the shares. Pinterest's Q1 demonstrated for the first time that efforts to improve the company's ad platform and auction are increasing revenues, the analyst tells investors in a research note.

Looking ahead, Pinterest sets a positive and ambitious trajectory for the second quarter of 2024. Revenue projections are targeted in the range of $835-850 million, pointing to 18-20% year-over-year growth. Furthermore, non-GAAP operating expenses are anticipated to be within the $490-505 million bracket. This would constitute an 11-15% growth year over year, which may reflect the company's commitment to investing in growth initiatives while maintaining a strict eye on operational efficiency.

Pinterest's first-quarter results paint a promising picture for investors and stakeholders with its user base expansion, soaring profits, and confident foresight. The company's strategic endeavors appear to be paying dividends, and it is gearing up for maintaining momentum into the next financial quarter, keeping a clear focus on scaling their operations while safeguarding profitability.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.