Pinterest saw a 6% increase in sales in the second quarter compared to the same period a year ago, with losses at $35 million, a decrease of 19% from the prior year. Additionally, the company anticipates high single-digit growth year over year for the third quarter, and low single-digit growth in non-GAAP operating expenses for the same quarter. Last week, Meta reported second-quarter numbers with double-digit revenue growth for the first time since 2021.
Pinterest's stock declined approximately 4% following the release of the company's Q2 earnings, which revealed expenses had grown at a faster rate than revenue. Here's how the company fared in the second quarter: Revenue came in at $708 million, while adjusted earnings per share equaled 21 cents, both of which were higher than Refinitiv's estimates.The social media platform's total expenses were $781 million for the period, representing an 11% increase from Q2 of the prior year. Bill Ready, Pinterest's CEO, stated in a statement that the company was "laser-focused on [its] key differentiators" and that they are beginning to reap the benefits. In addition, the company noted that their focus on cost efficiency had caused adjusted EBITDA margin expansion. The platform saw an 8% increase in global monthly active users, now totaling 465 million.Notably, last week, Facebook's revenue saw a double-digit growth for the first time since 2021, while Snap's sales dropped for the second consecutive period – causing its stock to plummet over 17%. While the digital advertising market is showing signs of a recovery, Snap appears to be lagging behind.
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