Pinterest’s ad spending results show strong graph on quarterly reports

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  • The company’s revenue increased 18% to USD 575 million in the first 90 days of the pandemic.
  • Pinterest earned 10 cents per share on an adjusted basis in the first quarter, above Wall Street projections of 4 cents per share.

Pinterest Inc's first-quarter sales and profit have managed to beat market expectations recently with increased ad spending by businesses, driving the image-sharing platform's stock up 9% in extended trade.

Pinterest, like its contemporaries, has had substantial user growth in the early months of the pandemic as homebound customers looked for projects to keep them occupied. With the lifting of lockdowns, however, the surge has waned, causing the corporation to put in extra efforts to develop its ad revenue.

The company’s revenue increased 18% to USD 575 million in the first 90 days of the pandemic, owing to growth in retail advertising and foreign businesses.

Todd Morgenfeld, the company's Chief Financial Officer, said they have profited a lot from the retail sector's success and expect that trend to continue. The younger generation such as Gen Z are more interested and increasing each day exclaimed by the executives.

While the firm’s monthly active users (MAUs) fell 9% to 433 million, mobile app MAUs, which account for most of its income, has increased. Pinterest's second-quarter revenue growth forecast of 11% was, below market forecasts.

It is worth noting that the impact of the Ukraine crisis on digital ad expenditure has also been emphasized in recent quarterly earnings from Google’s parent Alphabet Inc. and Snap Inc. Meanwhile, Pinterest earned 10 cents per share on an adjusted basis in the first quarter, above Wall Street projections of 4 cents per share.

Meanwhile, Metas shares have surged 15% during extended trading after Facebook disclosed that its DAU has surpassed Wall Street estimations. This comes despite Meta reporting the slowest revenue growth in a decade.

Source Credits:

https://www.moneycontrol.com/news/world/international-results/pinterest-posts-strong-quarter-on-ad-spending-boost-8421561.html