Pinterest Inc (NYSE:PINS) shares fell almost 10% overnight after the company's fourth-quarter revenue missed forecasts and it issued below-expectations guidance for the first quarter.
Chief executive Bill Ready unveiled a “third-party app integration with Google” after the results, which pared back the share price loss from as much as 28% initially.
The deal is tipped to be similar to an existing partnership with Amazon relating to advertising, which aims to monetise 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 came in at $981 million, Pinterest reported, up 12% on last year but below London Stock Exchange Group estimates for $991 million.
Revenue guidance for the first quarter of this year is between $690 million and US$705 million, with the mid-point of the range again below analysts’ average consensus estimate of $703 million.
Earnings per share grew over 80% to $0.53 in the fourth quarter, above analysts’ anticipations of $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 $36.96 in pre-market trading.