© Stocksak. This illustration was taken on July 13, 2021. REUTERS/Dado Ruvic/Illustration
Vansh and Shreyaa Agarwal
(Stocksak). -Pinterest Inc beat quarterly revenue estimates on Thursday. This makes it a rare shining spot in a otherwise dark social media sector. It also sent the image-sharing platform’s shares 15% higher after-hours trading.
Online players Alphabet Inc (NASDAQ:) Inc to Meta Platforms Inc have seen their earnings plummet due to declining advertising budgets. Snap Inc (NYSE:).
Pinterest (NYSE :)’s results showed that its ads business remained resilient in the face of industry downturn and that people were still engaging on its image-sharing platform to find inspiration for activities such as home renovations and recipe-based cooking.
After three quarters in decline, Pinterest’s global monthly active users increased 2.8% sequentially to 445,000,000, exceeding Factset estimates at 437.4million.
A September update to Apple Inc (NASDAQ)’s iOS 16 was a part of the growth, Todd Morgenfeld, finance chief, stated on a conference call with analysts.
He said that Pinterest’s resilience to ad-sales was due to the fact that a large proportion of its ad revenues come from ecommerce and consumer goods.
D.A. said, “What hurt Pinterest (during the pandemic), is helping them now.” Thomas Forte, Davidson analyst. He was referring to the company’s focus in retail and consumer goods.
“The bigger opportunity is to find a way that drives incremental engagement on the platform, get monthly active users growing again, and improve monetization because growth is slowing.”
Pinterest’s third quarter revenue increased by 8% to $684.6 Million. Refinitiv reports that although the pace of growth was slower than it has been in almost two decades, it still beat analysts’ average estimate at $666.7 million.
The company’s average global revenue per user increased 11% to $1.56. It posted an adjusted profit per share of $0.11, exceeding analyst estimates of $0.06/share.