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For Q2 2023 which ended on June 30, Pinterest reported revenue of $708 million and global monthly active users of about 465 million.
Pinterest Inc (NYSE: PINS) shares closed Tuesday trading at $26.21, up 3.19 percent from the day’s opening price. The sudden gains in the photo-sharing social media platform Pinterest were attributed to Q2 2023 financial results that depicted an accelerated revenue growth forecast. Notably, Pinterest reported a revenue of about $708 million during the second quarter compared to $665 million recorded in the same time last year, hence representing an annual growth of about 6 percent.
The social media platform announced a net loss of about $34.9 million during the second quarter compared to $43 million recorded during the same time last year, hence a change of 19 percent. Pinterest attributed its improved performance to an increased focus on its strengths that differentiate itself from other social media platforms.
“In Q2, we continued to build momentum with consumers and advertisers while further accelerating our pace of innovation,” said Bill Ready, CEO of Pinterest. “Over the past year, we’ve been laser-focused on our key differentiators and we’re seeing results. Users are coming back more often and engaging more deeply, Pinterest is increasingly shoppable and actionable, and we’re delivering better and more measurable performance for our advertisers…”
Pinterest Q2 2023 Financial Statement and Marker Outlook
Pinterest reported its business is mostly performing well in the United States and Canada where the company collected a total revenue of about $565 million during the second compared to $542 reported during the same time last year. In Europe, the company reported a revenue of about $114 million, up from around $102 million recorded during the same time last year. Notable, Pinterest collected a revenue of about $29 million from the rest of the world combined, representing a growth of about 22 percent from the same time last year.
However, in terms of monthly active users (MAUs), the company reported about 95 million in the United States and Canada, 124 million in Europe, and 246 million from the rest of the world. With the continued improvement of its core business, Pinterest is optimistic about operational growth during the third quarter.
Further, the company expects its third-quarter revenue to grow in the high single-digit range YoY. Meanwhile, Pinterest highlighted that further market outlook will be issued during the conference call with analysts.
Notably, the $17 billion social media company continues to face immense competition from other tech companies like Meta Platforms Inc (NASDAQ: META), and Snap Inc (NYSE: SNAP). Nonetheless, Pinterest is laser-focused on collaborating with different retailers to help its customers purchase products seamlessly. For instance, the company announced a strategic partnership with Amazon.com Inc (NASDAQ: AMZN) to increase its third-party ads.
In addition to announcing the strategic partnership, Pinterest released its earnings for the first quarter.
Pinterest (NYSE: PINS) has announced a partnership with Amazon (NASDAQ: AMZN) to bring third-party ads to the platform. The image-sharing and social media service noted that the new multi-year strategic ad partnership makes the e-commerce giant its first partner on third-party ads. Pinterest added that it chose Amazon as its users’ engagement with shoppable content on its platform continues to grow.
Pinterest also had its shares from the unpleasant economic situation that impacted businesses. While the company struggled to survive the macroeconomic forces, it also promised to adapt to the changing environment. The collaboration with Amazon could help Pinterest in offering consumers a more seamless buying experience as the latter has been working on connecting product inspiration to purchases. Pinterest said the multi-year partnership with Amazon will help it scale its efforts on giving the best to its users.
Pinterest and Amazon Team Up
According to Pinterest CEO Bill Ready, the deal with Amazon is a milestone. Also, it will contribute to the existing great brands on the platform. He added that users could access a more comprehensive and first-class buying experience. At the same time, it will offer greater performance for brands and advertisers. Speaking further on the partnership, which will be a multi-quarter implementation expected to begin rolling out before the end of the year, the CEO continued the move tallies with the company’s goal of bringing users’ dreams to life by making every Pin shoppable.
Additionally, Pinterest explained in its blog post how the new relationship with Amazon is an impactful decision.
“Over 463 million people come to Pinterest each month to create a life they love. Brands and products are a critical piece of this journey, enabling Pinners to move easily from inspiration to action and advertisers to realize value in connecting with users with high commercial intent. Our partnership with Amazon will allow us to scale these efforts in meaningful ways.”
On the other hand, Amazon SVP Paul Kotas noted that their company is pleased with the collaboration with Pinterest. Kotas said the development would make it easy for customers to discover and buy relevant items via shoppable content.
In addition to announcing the strategic partnership, Pinterest released its earnings for the first quarter. The company surpassed expectations in Q1 revenue and earnings as the quarterly revenue was up 5% YoY to $603 million. The image-sharing and social media service also experienced growth in its global monthly active users (MAUs), which added 7% year over year to 463 million. Pinterest’s total costs and expenses during the last quarter were $846 million, which included $121 million of restructuring charges. The company spent $72 million to repurchase 2.8 million shares of Class A common stock.
At press time, PINS is down 13.16% to $23.68 in premarket trading.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
Pinterest experienced an initial 12% decline in stock value following its less-than-expected Q4 2022 revenue haul.
Pinterest (NYSE: PINS) recently saw its shares slip after posting a weaker-than-expected Q4 2022 earnings report. For last year’s fourth quarter, the image-sharing and social media service raked in revenue of $877 million, where analysts expected a much higher revenue haul of $886.3. Pinterest also reported 29 cents in earnings per share (EPS) for Q4 2022 compared to the marginally higher consensus estimate of 27 cents per share.
Pinterest’s Q4 revenue grew 4% year-over-year (YoY), while the ear’s overall sales climbed 9% YoY to $2.8 billion. Although the social media platform raked $17 million in net income last quarter, it sustained a net loss of $96 million for the full year.
Other Key Takeaways
According to Pinterest, there was a 4% increase to 450 million in its global monthly active user base compared to last year. It also said the average revenue per user (ARPU) for the US and Canada rose 6% in the last quarter to $7.60.
The company’s shares declined in extended trading following its underwhelming quarterly performance, initially dropping as much as 12%. This informed a weak forecast for the first quarter of the new year. The San Francisco-based internet company now expects 2023 first-quarter sales to increase in the “low single digits” YoY. Meanwhile, analysts had expected an increase of 6.9% to $614.8 million.
Pinterest also revealed the impending exit of Todd Morgenfeld, the company’s chief financial officer and head of business operations. Morgenfeld will depart the company on July 1st of this year.
Pinterest chief executive officer Bill Ready touched on the company’s performance vis-à-vis its projections to remain competitive. According to Ready, “while the industry as a whole is facing headwinds, we are adapting quickly to a changing macro environment and are committed to creating a more positive online experience for our users and advertisers.”
Pinterest Q4 2022 Earnings Follow Meta, Alphabet, Amazon
Pinterest’s Q4 earnings come amid several other ad-supported companies, including Meta Platforms (NASDAQ: META) and Alphabet Inc (NASDAQ: GOOGL). The latter two companies also posted lukewarm numbers as the tech space tried to shake off last year’s debilitating selloffs.
Last week, Meta reported a Q4 sales decline of 4% YoY to $32.2 billion, with Alphabet’s Google ad business seeing $59 billion in Q4 revenue. The Alphabet development represents a 3.6% drop from the year-ago period.
Alphabet’s YouTube unit also pulled in 8% less than what it made in the same period last year. For the fourth quarter of 2022, the unit made $7.96 billion.
Meanwhile, Snapchat parent Snap Inc (NYSE: SNAP) reported slightly higher Q4 sales of $1.3 billion. However, this figure still missed the consensus estimate of $1.31 billion for the same period.
Despite the general slump in quarterly performance across tech mainstays, Amazon’s (NASDAQ: AMZN) digital advertising unit was a notable outlier. In the fourth quarter, the unit reported a 19% jump in sales to $11.6 billion.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Snap blames its underperforming Q3 2022 financial report to rising inflation and the war in Ukraine. The report tanked other stocks.
Snap (NYSE: SNAP), the first major social media company to release its Q3 2022 earnings, posted disappointing figures. For the period that ended September 30th, the prominent camera and social media company saw its shares plummet 25%. Furthermore, the California-based company warned that it would see no revenue growth in the typically busy holiday quarter. In a statement, Snap said that they “expect that the operating environment will continue to be challenging in the months ahead.”
According to the company, this projected letdown is primarily due to rising inflation and the war in Ukraine. As a result, these unsavory macroeconomic parameters could hurt tech companies dependent on advertising revenue. In a letter to investors, Snap explained that inflation is forcing some advertisers to slash their marketing budgets.
Snap Underwhelming Q3 2022 Numbers
Snap’s revenue for the third quarter came in at $1.13 billion, which represents an increase of 6% from the year-ago quarter. However, the camera and social media company came up short of the consensus estimate of $1.14 billion.
Snap branded its latest quarterly outing as its slowest revenue growth since going public five years ago. The shares of the Snapchat owner had been down 77% so far this year even before the latest dismal results. With Thursday’s debacle, Snap’s market capitalization ceded more than $4 billion in value after the bell.
Back in August, Snap announced that it would lay off 20% of its staff force and shut down a string of projects to save costs. These projects include mobile games, as well as novel initiatives like a flying drone camera. At the time, Snap chief executive officer Evan Spiegel noted:
“While we have built substantial capital reserves, and have made extensive efforts to avoid reductions in the size of our team by reducing spend in other areas, we must now face the consequences of our lower revenue growth and adapt to the market environment.”
In addition, the company also explained that such cuts will help save an estimated $500 million in costs annually. Furthermore, Spiegel admitted that such changes would not be easy and demanded decisive action from Snap. Commending the team’s adaptability at the time, the Snap CEO also added:
“I am proud of the strength and resilience of our team as we have navigated the myriad challenges of growing our business in a highly competitive industry during uncertain and unprecedented times.”
Internet Ad-Focused Platforms Slip Up
Following the less-than-stellar Snap Q3 2022 outing, the shares of other internet advertising-focused companies also dipped. For example, Facebook-parent Meta Platforms (NASDAQ: META) slid about 4%, while Alphabet (NASDAQ: GOOGL) retraced 2%. In addition, image sharing and social media service platform Pinterest (NYSE: PINS) saw its stock take an 8% dive.
The aggregate value in the late trading sell-off of internet ad companies’ stocks stood at more than $40 billion. This list also includes the lower share value of Swedish streamer Spotify (NYSE: SPOT) and American digital media hardware manufacturer Roku (NASDAQ: ROKU).
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.