The share price of Pinterest on Tuesday, April 30, increased by 18% during extended trading.
The mentioned indicator showed significant growth after the specified company released information on its financial results for the first quarter of the current year. The corresponding figures exceeded the preliminary expectations of analysts. Moreover, in the first quarter of the current year, Pinterest recorded the fastest revenue growth since 2021.
The company’s adjusted earnings per share currently stand at 20 cents. LSEG experts expected that the corresponding indicator would be fixed at 13 cents.
Pinterest’s revenue for January-March of the current year was $740 million. This indicator increased by 23% compared to the result for the same period 2023. LSEG experts expected the company’s revenue for the first quarter of 2024 to be $700 million.
Pinterest’s net loss for January-March of the current year was $24.8 million. In the first quarter of 2023, this figure was fixed at $208.6 million.
In January-March of the current year, 518 million global monthly active users (MAUs) of the Pinterest virtual platform were registered. This indicator is 12% higher than the figure for the same period in 2023. According to StreetAccount, Wall Street analysts expected global MAUs to reach 504.9 million people in the first quarter of 2024.
Pinterest reported that on its virtual platform, the fastest growing, largest, and most engaged demographic is representatives of Generation Z.
The company’s average revenue per user for January-March 2024 was $1.46. Analysts surveyed by StreetAccount expected the corresponding figure to be fixed at $1.40.
Pinterest CEO Bill Ready said that the company is currently striving to increase returns from advertisers. As part of its efforts to achieve this goal, the firm invests in artificial intelligence and improves shoppability.
Bill Ready says that the company is currently executing with tremendous clarity and focus. In this context, it was noted separately that the firm offers new products and experiences that users need. Bill Ready also stated that in recent years the company has found its best product market fit in years.
Firms operating in the digital advertising area, such as Pinterest, are currently demonstrating the dynamic of growth, which is a recovery from a very difficult 2022 when brands began to cut their costs as part of measures aimed at minimizing the negative effects of the process of increasing inflation.
Last week, Meta, Snap, and Alphabet, Google’s parent company, released their performance reports for the first quarter of 2024. The corresponding figures exceeded the preliminary expectations of analysts.
Pinterest predicts that its revenue for the second quarter of 2024 will range from $835 million to $850 million. The corresponding indicator indicates an increase of 18-20% year-on-year. Analysts predicted that Pinterest’s revenue in the second quarter of 2024 would be $827 million.
Market intelligence firm Sensor Tower reported that most of Pinterest’s spending in the United States on advertising in the first quarter of 2024 was in the shopping category. The corresponding figure was 50% of the total structure of the mentioned expenses.
