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Shares of Pinterest jumped 18% in extended trading Tuesday after the company reported first-quarter results that beat analyst estimates and showed its fastest revenue growth since 2021.
Here’s how the company performed, compared to LSEG analysts’ expectations:
- Earnings per share: 20 cents adjusted versus 13 cents expected
- Income: $740 million versus $700 million expected
Revenue for the quarter jumped 23% from $602.6 million a year earlier. Pinterest’s first-quarter net loss narrowed to $24.8 million, or a loss of 4 cents per share, from $208.6 million, or a loss of 31 cents per share, a year earlier. early.
Pinterest reported 518 monthly active users (MAUs) worldwide for the first quarter, up 12% year over year. Wall Street expected 504.9 million MAU, according to StreetAccount. Pinterest said that Generation Z is the fastest growing, largest and most engaged demographic on the platform.
The company’s average revenue per user was $1.46 for the period, while StreetAccount expected $1.40 per user.
In its first-quarter release, Pinterest CEO Bill Ready said the company is generating better returns for advertisers through its investments in AI and shoppability.
“We run our business with great clarity and focus, delivering new products and experiences that users want, and in doing so, we find our best product fit for market in years,” Ready said.
Digital advertising companies like Pinterest have started to grow again after a brutal 2022, when brands reined in spending to cope with high inflation levels. Meta, Instant And Google Parent company Alphabet all reported first-quarter results last week that beat analysts’ revenue estimates.
For its second quarter, Pinterest expects to achieve revenue between $835 million and $850 million, which equates to 18% to 20% year-over-year growth. Analysts expected revenue of $827 million.
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