Pinterest's stock sinks despite earnings beat, as outlook comes in light

By Emily Bary

Global monthly active users rise 12% from a year before

Pinterest Inc. said Tuesday that it's gaining share of advertiser budgets as marketers become more satisfied with their performance on the platform, and that helped power the company to an earnings beat for the latest quarter.

Still, Pinterest's (PINS) revenue outlook for the current quarter came up shy of expectations. Shares are down 20% in the extended session Tuesday.

The company, which operates a platform for photo and video sharing, swung to a profit in the second quarter, recording net income of $8.9 million, or 1 cent a share. A year before, Pinterest recorded a $34.9 million net loss, equating to 5 cents a share.

On an adjusted basis, Pinterest posted 29 cents in earnings per share, up from 21 cents the year before and ahead of the 28-cent FactSet consensus view.

Revenue of $854 million was up 21% from a year prior and bested the $849 million consensus forecast.

"Our monetization efforts are paying off. Advertisers are seeing improved performance across key objectives on Pinterest - from brand awareness to conversion - as we continue to roll out AI-powered products and experiences," Chief Executive Bill Ready said.

Pinterest anticipates $885 million to $900 million in revenue for the third quarter, which is below the $909 million that analysts were projecting.

From a user standpoint, Pinterest reported 522 million in global monthly active users for the June quarter, up 12% from a year before, while analysts were modeling 530 million. MAUs were up 3% in the U.S. and Canada, 9% in Europe and 17% in the rest of the world.

Average revenue per user was up 8% globally to $1.64, with the fastest growth coming in the U.S. and Canada. There, the company saw $6.85 in average revenue per user, up 16%.

-Emily Bary

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07-30-24 1609ET

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