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Pinterest stock soared 18% in after-hours trading on Tuesday. First quarter results This beat analysts’ expectations and marked the highest revenue growth since 2021.
Here’s how the company performed compared to LSEG analysts’ expectations:
- Earnings per share: Adjusted 20 cents, forecast 13 cents.
- Revenue: $740 million vs. $700 million expected
Revenue for the quarter increased 23% from $602.6 million in the year-ago period. 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, in the year-ago period.
Pinterest reported 518 global monthly active users (MAUs) in the first quarter, a 12% year-over-year increase. According to StreetAccount, Wall Street expected his MAU to be 504.9 million. Pinterest said Gen Z is the fastest growing and the largest and most engaged demographic on the platform.
The company’s average revenue per user during the same period was $1.46, compared to StreetAccount’s forecast of $1.40 per user.
Pinterest CEO Bill Ready said in a Q1 release that the company is making more money for advertisers through investments in AI and shoppability.
“We operate with great clarity and focus to deliver new products and experiences that our users want, and in doing so, we are finding the best product-market fit in recent years,” Ready said. he said.
Digital ad companies like Pinterest are starting to grow again after a tough 2022, when brands reined in spending to combat high levels of inflation. Meta, Snap and Google’s parent company Alphabet all reported first-quarter results last week that beat analysts’ revenue expectations.
Pinterest expects second-quarter revenue to be between $835 million and $850 million, representing year-over-year growth of 18% to 20%. Analysts had expected sales of $827 million.
