Advertisement
Singapore markets closed

  • Straits Times Index

    3,307.90
    -6.15 (-0.19%)
     

  • Nikkei

    38,946.93
    -122.75 (-0.31%)
     

  • Hang Seng

    19,220.62
    -415.60 (-2.12%)
     

  • FTSE 100

    8,416.45
    -7.75 (-0.09%)
     

  • Bitcoin USD

    69,366.53
    -525.80 (-0.75%)
     

  • CMC Crypto 200

    1,502.11
    +13.57 (+0.91%)
     

  • S&P 500

    5,318.58
    +10.45 (+0.20%)
     

  • Dow

    39,863.71
    +56.94 (+0.14%)
     

  • Nasdaq

    16,817.17
    +22.30 (+0.13%)
     

  • Gold

    2,427.60
    -10.90 (-0.45%)
     

  • Crude Oil

    79.06
    -0.74 (-0.93%)
     

  • 10-Yr Bond

    4.4140
    -0.0230 (-0.52%)
     

  • FTSE Bursa Malaysia

    1,622.09
    -5.41 (-0.33%)
     

  • Jakarta Composite Index

    7,186.04
    -7,266.69 (-50.28%)
     

  • PSE Index

    6,633.66
    -49.12 (-0.74%)
     

Pinterest forecasts quarterly revenue above estimates, shares surge

Jaspreet Singh
Updated ·2-min read

(Reuters) -Pinterest forecast second-quarter revenue above Wall Street estimates on Tuesday, expecting a boost from its ad partnerships with Amazon and Google, sending shares up almost 16% in pre-market trading on Wednesday.

The company has benefited from marketers turning to the platform to reach Gen Z users - more than 40% of its user base - and leverage its new AI-driven ad tools and latest ad formats, which offer better user engagement.

In early February, Pinterest announced a third-party ad deal with Alphabet's Google, allowing the company to serve ads via Google's ad manager, having struck a deal with Amazon.com last year.

"Q1 was a milestone quarter for Pinterest as we reached new highs .... our fastest user and revenue growth since 2021," CEO Bill Ready said in a statement.

Pinterest saw an "emerging contribution" in the first quarter from third-party partnerships, which are ramping and complementing "the really strong growth" in the first-party ad demand, Ready added on a post-earnings call.

ADVERTISEMENT

The company expects second-quarter revenue to be between $835 million and $850 million, compared with analysts' average estimate of $826.5 million, according to LSEG data.

In the first quarter, global monthly active users rose 12% to 518 million, compared with estimates of about 503.2 million users.

Revenue for the first quarter rose 23% from a year earlier to $740 million, beating estimates of $699.9 million. Adjusted profit per share came in at 20 cents, also beating estimates of 13 cents.

CORRECTS SPELLING FROM HUANG TO HWANG- Pinterest co-founder and chief product officer Evan Sharp, left, and fellow co-founder & CEO Ben Silbermann, right, watch as company Communications Manager Enid Hwang rings a ceremonial bell when their IPO begins trading on the New York Stock Exchange floor, Thursday, April 18, 2019. (AP Photo/Richard Drew)
Pinterest executives ring the bell at the company's IPO begins trading on the New York Stock Exchange floor in April 2019. (AP Photo/Richard Drew) (ASSOCIATED PRESS)

"As Pinterest continues to sharpen their ad tools and refine their targeting algorithms, expect the platform to become a central hub for performance marketing, offering unrivaled opportunities for brands," Jeremy Goldman, senior director of briefings at Emarketer said.

A majority of Pinterest's first quarter ad spend in the U.S. came from the shopping category at 50%, followed by 20% from consumer packaged goods (CPG), market intelligence firm Sensor Tower told Reuters on Monday.

The top three advertisers in the U.S. for Pinterest in the quarter were Amazon, Target, and PDD Holdings' Temu, Sensor Tower added.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)