shares were trading sharply lower in late trading Monday after the social media firm provided cautious commentary on the outlook for the March quarter and announced the resignation of CFO Todd Morgenfeld.
The soft online ad environment continues to weigh on Pinterest’s business. For the December quarter, Pinterest (ticker: PINS) posted revenue of $877 million, up 4% from a year ago but slightly below the consensus forecast at $888 million. The company said monthly average users in the quarter were 450 million, up 4% and a hair below the consensus projection at 451 million.
Pinterest in late trading was down 10% at $25.09.
On an adjusted basis, the company earned 29 cents a share in the quarter, two cents above Wall Street’s estimates. Under generally accepted accounting principles, or GAAP, Pinterest earned 3 cents a share.
Adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was $196 million, slightly ahead of estimates. Average revenue per user was $1.96, about in line with expectations.
For all of 2022, Pinterest had revenue of $2.8 billion, up 9% from a year ago, with adjusted profit of 61 cents a share, down from $1.13 a year ago.
For the March quarter, Pinterest sees growth in the low single-digits on a year-over-year basis. If you assume 2.5% growth, that would imply revenue of about $589 million, below consensus at $617 million. The company also said it expects non-GAAP operating expenses to be down low double-digits from the December quarter.
Meanwhile, Pinterest said that CFO Morgenfeld will transition from the company to pursue new career opportunities on July 1.
Pinterest also said its board has approved a new $500 million stock buyback program.
“While the industry as a whole is facing headwinds, we are adapting quickly to a changing macro environment and are committed to creating a more positive online experience for our users and advertisers,” Pinterest CEO Bill Ready said.
Write to Eric J. Savitz at firstname.lastname@example.org