Pinterest (NYSE: PINS) announces its second quarterly earnings report on Thursday after the bell. Revenue doubled but once again misses on user growth expectations. The company reported 454 million monthly active users, down more than 5% from the 478 million the company reported in April 2021. Shares fell as much as 16% on Thursday after hours
- Q2 revenue grew 125% year over year to $613 million.
- Global Monthly Active Users (MAUs) grew 9% year over year to 454 million.
- GAAP net income was $69 million for Q2. Adjusted EBITDA was $178 million for Q2.
Pinterest also provided a Q3 revenue growth estimate “in the low-40s” on a year to year basis. That was approximately in line with Refinitiv expectations of 42.8% year-to-year revenue growth for the upcoming quarter.
WallStreet analysts had high expectations for the company after Snap, their rival company, shared excellent quarterly earnings recently.
Here’s what the analysts expected from the image-sharing platform:
Earnings: $0.13 per share anticipated
Revenue: $561.88 million anticipated
The company’s recent launch of idea pins has boosted its user engagement, and with its current product tagging feature within these idea pins, Pinterest aims to help creators by forming shoppable content. This feature which is mainly available in the U.K, Australia, Canada, France, Germany, Austria, and Switzerland region, will help the creators to engage and explore on the platform.
The social media service provider famous for its ideas or image sharing feature announced in April that it would expand its partnership with Shopify SHOP in 27 new countries. It also saif it would be expanding the shopping feature in Canada, Australia, France, and Germany in the quarter. This feature would allow users to shop from Pins, on boards or even from search. The Verified Merchant Program, where sellers can advertise their products from their shop, will be extended to countries like Australia, Canada, France, Germany, and the U.K.
The platform’s main aim was to focus on turning their product inspiration into clicks and purchases, and they have been behind with embracing the creator community. And this created an interest among the online shoppers.