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Shares of Pinterest surged 18% in after-hours trading on Tuesday after the company reported earnings. First quarter results That beat analysts’ expectations and showed the fastest revenue growth so far in 2021.
Here’s how the company performed compared to LSE analysts’ expectations:
- Earnings per share: Adjusted 20 cents, expected 13 cents
- income: US$740 million vs expected US$700 million
Revenue for the quarter grew 23% from $602.6 million a year earlier. Pinterest’s first-quarter net loss narrowed to $24.8 million, or 4 cents a share, from $208.6 million, or 31 cents a share, a year earlier.
Pinterest reported 518 global monthly active users (MAU) in the first quarter, a 12% increase from the same period last year. Wall Street expects monthly active users to be 504.9 million, according to StreetAccount. Pinterest says Gen Z is the fastest-growing, largest and most engaged demographic on the platform.
During the period, the company’s average revenue per user was $1.46, while StreetAccount expects average revenue per user to be $1.40.
Pinterest CEO Bill Ready said in a first-quarter report that the company is delivering greater returns to advertisers thanks to investments in artificial intelligence and shoppability.
“We are executing with extreme clarity and focus to deliver new products and experiences that our users want, and in doing so we have found the best product market fit for many years,” Reddy said.
Digital advertising companies like Pinterest have returned to growth after a brutal 2022, when brands reined in spending to combat high inflation. Yuan, break and Google Parent company Alphabet reported first-quarter results last week that exceeded analysts’ revenue expectations.
Pinterest expects second-quarter revenue to be between $835 million and $850 million, equivalent to an annual increase of 18% to 20%. Analysts expected revenue of $827 million.
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