Pinterest's stock price soared 20% after the company released its fourth-quarter earnings report.

Pinterest's stock surged 20% after its fourth-quarter earnings report, as revenue exceeded expectations and user growth was robust. The company's fourth-quarter sales reached $1.15 billion, topping Wall Street's $1.14 billion estimate. The company's deferred tax income was $1.6 billion, driving net income to $1.85 billion, up 18% year-on-year. Adjusted EPS was 56 cents. Global monthly active users were 553 million, topping the 547.4 million estimate, up 11% year-on-year and nearly 3% sequentially. Global average revenue per user was $2.12, topping the $2.09 estimate. Pinterest expects first-quarter sales between $837 million and $852 million, with a midpoint of $8.445 billion, topping analyst estimates of $8.33 billion. The company's adjusted EBITDA margin was 41%, topping Wall Street's 39% estimate. Pinterest CEO Bill Ready said the company's strategy is working, with users visiting Pinterest more frequently and the platform being more useful, and its focus on the bottom of the sales funnel is delivering results for users and advertisers.