Pinterest shares plunged 19% in after-hours trading Thursday after the social media platform reported fourth-quarter results that missed analyst expectations. The company posted revenue of $1.32 billion, slightly below the $1.33 billion consensus estimate, though it represented a 14% year-over-year increase. Adjusted earnings per share of $0.67 also fell short of the $0.68 analyst forecast.

Despite reporting record annual revenue of $4.2 billion, up 16% for 2025, investors reacted negatively to the quarterly miss and first-quarter guidance. Pinterest forecast Q1 revenue between $951 million and $971 million, below the $981.3 million consensus estimate. The company reported global Monthly Active Users (MAUs) reached an all-time high of 619 million, up 12% year-over-year, with average revenue per user growing 2% globally to $2.16.

CEO Bill Ready highlighted that users are at all-time highs with more than 80 billion monthly searches on the platform, emphasizing continued innovation in visual search using AI. However, the revenue growth deceleration and conservative guidance overshadowed these user engagement metrics, triggering the sharp sell-off in after-hours trading.