Earnings Results: Pinterest shares fall as revenue, earnings benefit from ads and user engagement increase


Pinterest Inc.’s stock were volatile in after hours trading following a surge in advertising, user engagement and some AI bets.

Shares of Pinterest PINS, -0.10% initially spiked 9% in extended trading Tuesday after the company reported quarterly results that topped analysts’ revenue and earnings estimates, but soon sank to a 4% loss. The stock ended the after-hours session down 2.8%.

“Users are coming back more often and engaging more deeply,” Chief Executive Bill Ready said in an interview. Global monthly active users increased 8% year over year to 465 million — the measurement’s best performance in two years.

At the same time, enhanced AI capabilities helped match consumers with shoppable content that is most relevant to them, Ready said.

Thanks to a focus on cost efficiencies, Pinterest returned to adjusted EBITDA margin expansion in Q2, added Julia Brau Donnelly, who joined Pinterest as chief financial officer from Wayfair Inc. W, -2.53%.

The image-sharing platform reported a fiscal second-quarter net loss of $34.9 million, or 5 cents a share, compared with a net loss of $43.1 million, or 7 cents a share, in the year-ago quarter. Adjusted earnings were 21 cents a share.

Revenue was $708 million, compared with $666 million a year ago. Analysts surveyed by FactSet had expected on average net earnings of 12 cents a share on revenue of $696 million.

Pinterest provided third-quarter revenue guidance in the high single-digits year over year without providing specific numbers. Analysts polled by FactSet are forecasting $737 million.

Like Alphabet Inc.’s GOOGL, -0.88% GOOG, -0.92% Google and Facebook parent Meta Platforms Inc. META, +1.29% before it, Pinterest benefitted from a surge in advertising and user engagement.

Shares of Pinterest have gained 19% this year, while the broader S&P 500 index SPX, -0.27% is also up 19% in 2023.

This article was originally published by Marketwatch.com. Read the original article here.

Previous articleTrump indicted in special counsel’s Jan. 6 case
Next article: Shares of RV retailer Camping World Holdings fall after results miss estimates


Please enter your comment!
Please enter your name here