06:26 AM EST, 11/05/2025 (MT Newswires) -- Pinterest ( PINS ) shares dropped early Wednesday as the image-sharing platform company issued a fourth-quarter revenue outlook indicating a sequential slowdown in annual growth, while its earnings in the prior three-month period fell short of market estimates.

The company anticipates revenue to come in between $1.31 billion and $1.34 billion in the ongoing quarter, representing annual growth of 14% to 16%, it said late Tuesday. The current consensus on FactSet is for sales of $1.33 billion. In the third quarter, revenue rose 17% year over year to $1.05 billion, largely in line with the Street's view.

For the September quarter, Pinterest ( PINS ) posted adjusted earnings of $0.38 a share, up from $0.32 the year before, but below the average analyst estimate of $0.42. The stock fell 17% in the most premarket activity.

Overall ad impressions grew 54% in the third quarter, while ad pricing declined 24% on a yearly basis, Chief Financial Officer Julia Donnelly said during an earnings call, according to a FactSet transcript. "The primary driver of the continued strong growth in ad impressions and corresponding decline in ad pricing continues to be the growing mix shift from ad impressions in previously unmonetized or under-monetized international markets," Donnelly added.

Revenue in the US and Canada inclined 9% to $786 million, buoyed by retail, consumer packaged goods, telecom and entertainment, according to Donnelly. Revenue in Europe climbed 41% to $193 million, driven by retail, while the rest of the world logged a 66% jump in revenue.

"We continue to diversify our business across geographies," Donnelly said on the call. "We did face pockets of moderating ad spend in (US and Canada) in (the third quarter), as larger US retailers navigate tariff-related margin pressure in the current environment."

The platform's monthly active users increased 12% to 600 million amid gains across all geographic regions. Average revenue per user improved 5% from the prior-year quarter.

Adjusted earnings before interest, taxes, depreciation and amortization came in at $306.1 million versus nearly $247 million a year ago. For the ongoing period, adjusted EBITDA is pegged at $533 million to $558 million.

"Our (fourth-quarter) adjusted EBITDA guidance confirms that we will continue to expect adjusted EBITDA margin expansion in the second half of 2025," Donnelly told analysts. "Consistent with our commentary on our last earnings call, the level of expansion in the second half will be lower than the more elevated expansion we delivered in the first half of 2025 as we continue to invest in revenue-driving initiatives."