Pinterest CEO Bill Ready rang the opening bell at the New York Stock Exchange (NYSE) on May 15, 2024 in New York City, USA.
Brendan McDermid | Reuters
interest The company’s shares fell about 15% on Tuesday when it reported second-quarter earnings and provided third-quarter guidance that was below analysts’ expectations.
According to LSEG, the company performed as follows:
- income: $854 million vs. $848 million expected
- Earnings per share: Adjusted 29 cents, expected 28 cents
Revenue increased 21% year over year, and quarterly net income was $9 million, or 1 cent per share, compared with a net loss of $35 million, or 5 cents per share, in the same period last year. last year Total costs and expenses were $781 million.
Pinterest said it expects third-quarter sales to be between $885 million and $900 million, equivalent to year-over-year growth of approximately 16% to 18%.
Analysts expected revenue guidance of about $907 million.
“Our monetization efforts are paying off,” Pinterest CEO Bill Ready said in a statement. “As we continue to launch products and experiences powered by artificial intelligence, advertisers are seeing everything from brand awareness to conversion rates on Pinterest. Performance on key targets has improved and as a result we are gaining share of the advertising budgets of some of the world’s largest brands.”
Pinterest said its global monthly active users (MAUs) were 522 million in the second quarter, exceeding analysts’ expectations of 520.1 million. Regarding the regional distribution of Pinterest’s global MAU, the company said there are 98 million in the United States/Canada, 136 million in Europe, and a total of 288 million in the rest of the world. Analysts expect Pinterest to have 98.4 million users in the US/Canada, 136.8 million in Europe, and 284.6 million in the rest of the world.
Additionally, Pinterest reported second-quarter global average revenue per user (ARPU) of $1.64, in line with analyst expectations. As for the regional distribution of Pinterest’s global ARPU, the company said that it was US$6.85 in the United States/Canada, US$1.03 in Europe, and 13 cents in the rest of the world, while analysts’ expectations were US$6.88, US$1.01, and 13 cents respectively.
Pinterest Chief Financial Officer Julia Brau Donnelly said in a conference call with analysts that the technology, automotive and financial services sectors are the company’s “sources of strength” when it comes to its online advertising business. However, growth in these sectors was “partly offset by weakness among food and beverage advertisers, who are dealing with broader headwinds in the category,” Donnelly said.
Regarding the broader market, Reddy told analysts on the call, “We believe the advertising market is relatively stable compared to last quarter.”
last week, letter report Second-quarter revenue of $84.74 billion exceeded analysts’ expectations. However, the company’s YouTube ad sales for the same period were $8.66 billion, missing analysts’ expectations of $8.93 billion.
Yuan will release second-quarter earnings on Wednesday, while break Its latest quarterly financial report is scheduled to be released on Thursday.
