Dive Brief:
- CFO and Head of Business Operations for technology company and social media service Pinterest Todd Morgenfeld will depart from his role to pursue “new career opportunities,” the company announced in a Monday filing with the Securities and Exchange Commission.
- The departure follows a slowdown in online ad spending and lower than expected revenue for the company’s fourth quarter, according to Pinterest’s fourth quarter and full year 2022 earnings results also reported Monday.
- Morgenfeld will leave the company effective July 1, according to the filing, and will work to ensure an “orderly transition,” the company said. Pinterest will also begin a search for Morgenfeld’s successor, the company said in the filing.
Dive Insight:
Upon his departure, Morgenfeld will receive a cash payment of $400,000 equal to 12 months of his base salary, as well as restricted stock awards, according to the SEC filing.
A six-year veteran of the firm, Morgenfeld joined Pinterest in 2016, having previously served as VP, finance for fellow social platform Twitter, according to his LinkedIn profile. He has also served as SVP, treasury, financial analytics and corporate development for Hewlett-Packard, and is a member of the board of directors for retailer Urban Outfitters.
“Todd has made significant contributions to our business over the last six-plus years, including leading the company's IPO process, helping the company navigate the pandemic, advancing our revenue functions, maturing our business operations, and partnering with me when I joined the company last year,” CEO Bill Ready said Monday of Morgenfeld’s departure during Pinterest’s fourth quarter earnings call.
Morgenfeld led Pinterest through its April 2019 initial public offering, with the company making its public debut at a $12.7 billion valuation, according to a 2019 report by the New York Times.Video conferencing platform Zoom went public on the same day, shelling shares with a valuation of $9.2 billion, according to the NY Times, and ended its first day of trading with a valuation of just under $16 billion, according to a 2019 report by CNN.
Pinterest announced the CFO’s departure following a lukewarm quarter, where softening advertiser demand contributed to lower than expected revenue growth.
Pinterest reported quarterly revenue of $877 million for the period ending Dec. 31, according to its earnings results, a 4% increase from the $846 million reported a year prior. For the full year, Pinterest reported a 9% bump up in revenue to $2.8 billion. The company also grew monthly active users by 4% year-over-year to reach 450 million.
The social media service is also one among several technology companies which have announced layoffs in recent months as the companies battle persistent cost pressures. Pinterest laid off about 150 employees or less than 5% of its total workforce at the top of the month, according to a Feb. 1 report by Bloomberg.
The Pinterest downsizing follows staff reductions by high-profile technology companies including Amazon, Google parent Alphabet, and software company Microsoft.
Pinterest is expecting macroeconomic challenges to linger into 2023, forecasting revenue growth in the “low single-digit percentage range” for Q1 of this year, Morgenfeld said on the Monday earnings call.
“We also expect headwinds to persist from our US small and medium business and mid-market advertisers as they continue to face outsized challenges in this macro environment,” he said, noting advertisers remain “price sensitive.”
Pinterest declined to offer comment beyond the details shared in its Monday press release.
