Pinterest (NYSE: NYSE:PINS) has posted a robust performance for Q3 FY2023, exceeding analysts' expectations with an 11.5% YoY revenue growth, reaching $763.2 million. The firm's non-GAAP EPS also saw a significant increase to $0.28, up from $0.11 per share year over year.
The company's Free Cash Flow surged by 73.7% from the previous quarter, amounting to $107.5 million. In addition, the GAAP gross margin saw a considerable rise from 73.3% to 77.6%.
Pinterest also reported a strong Global Monthly Active Users (MAU) growth with an increase of 37 million users YoY, bringing its total user base to 482 million worldwide.
CEO Bill Ready attributed the strong revenue performance and substantial margin expansion to Pinterest's unique position as a visual search, discovery, and shopping platform. Despite outperforming expectations, the company's YoY revenue growth was viewed as moderate at 11.5%.
InvestingPro Insights
According to InvestingPro data, Pinterest (NYSE: PINS) holds a market cap of 16.8B USD, with a negative P/E ratio of -58.29. The company has seen a revenue growth of 5.59% in the last twelve months as of Q2 2023, reaching 2872.36M USD. However, the company has been trading at a high Price / Book multiple of 6.63.
In terms of InvestingPro Tips, Pinterest holds more cash than debt on its balance sheet, and its liquid assets exceed short term obligations. This suggests a strong financial position. Despite not being profitable over the last twelve months, analysts predict the company will be profitable this year. Yet, it's worth noting that the company's revenue growth has been slowing down recently, and it does not pay a dividend to shareholders.
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