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Shares of Pinterest rose 16% in extended trading Tuesday after the company reported first quarter results beat analysts’ estimates and showed the fastest revenue growth since 2021.
Here’s how the company did, compared to LSEG analyst expectations:
- Earnings per share: 20 cents adjusted from 13 cents expected
- Revenue: $740 million vs. $700 million expected
Revenue for the quarter increased 23% from $602.6 million a year earlier. Pinterest’s net loss in the first quarter 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.
Pinterest reported 518 monthly active users (MAUs) globally in the first quarter, up 12% year over year. Wall Street expected MAU to be 504.9 million, according to StreetAccount. Pinterest says Generation Z is the fastest growing, largest and most engaged demographic on the platform.
The company’s average revenue per user was $1.46 during the period, while StreetAccount expected $1.40 per user.
In the first quarter release, Pinterest CEO Bill Ready said the company is delivering greater returns to advertisers thanks to investments in AI and shopping capabilities.
“We are executing with great clarity and focus, delivering new products and experiences that users want, and in doing so, we are finding the best product in the market,” said Ready. mine has been consistent for many years.”
Digital advertising companies like Pinterest have already started grow again after a brutal 2022, when brands reined in spending to cope with high inflation. Meta, Take a snap And Google Parent company Alphabet both reported first-quarter results last week that exceeded analysts’ revenue estimates.
For the second quarter, Pinterest is expected to report revenue of between $835 million and $850 million, which represents 18% to 20% year-over-year growth. Analysts were expecting revenue of $827 million.
Pinterest will hold its quarterly call with investors at 4:30 p.m. ET.
