Proactive Investors - Pinterest Inc (NYSE:PINS) shares fell almost 10% overnight after news of a new partnership with Google (NASDAQ:GOOGL) failed to stem losses caused by an earnings miss and below-expected guidance.
Chief executive Bill Ready unveiled a “third-party app integration with Google” after the results, lifting share price losses up from as much as 28% initially.
This is tipped to be similar to an existing partnership with Amazon (NASDAQ:AMZN) relating to advertising, which bids to monetize the photo-sharing app further by making it easier for users to buy products they see.
However, news of the Google partnership, which Ready said went live a few weeks ago, failed to fully reverse the losses seen after Pinterest released results overnight.
Revenue for the three months to December sat at US$981 million, Pinterest reported, up 12% on last year but below London Stock Exchange Group (LON:LSEG) estimates for US$991 million.
Revenue guidance for the upcoming first quarter was offered between US$690 million and US$705 million, with the mid-point of the range again beneath analysts’ tipped US$703 million.
Earnings per share grew over 80% to US$0.53 and sat above analysts’ anticipations of US$0.51, meanwhile.
“Pinterest is the rare business where the interests of users and advertisers are aligned,” chief executive Bill Ready commented.
“It’s proven to be true as we continue to post double-digit revenue growth and have achieved an all-time high for global monthly active users.”
Shares fell 9.23% to US$36.96 in pre-market trading.