Jul 30, 2021
Pinterest beats quarterly revenue estimates as ad spending booms
Jul 30, 2021
Pinterest Inc on Thursday reported second-quarter revenue above Wall Street estimates, as ad spending by online retailers picked up with the economy bouncing back from pandemic lows.
The image-sharing company's total revenue more than doubled to $613 million in the quarter, compared with analysts' average estimates of $562.1 million, according to IBES data from Refinitiv.
Pinterest, Instagram, Snapchat and other apps with shopping features have benefited from the pandemic accelerating the shift to e-commerce, as businesses ramp up their digital ad budgets to reach consumers spending more time online.
The digital pinboard site, which generates revenue by placing advertisements next to posts uploaded by users, also said it expects third-quarter revenue to grow in the low-40s range on a percentage basis.
However, Pinterest's monthly active users (MAU), a widely watched metric indicating users' level of engagement with the platform, grew only 9% to 454 million in the quarter, compared with 416 million last year. Analysts on average estimated 487.1 million.
The company said it would not provide guidance for MAUs, citing the "lack of visibility" caused by the pandemic.
As of July 27, U.S. MAUs have declined nearly 7% year-over-year, while global MAUs have grown nearly 5%, it said.
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