Pinterest experienced a stock price decline in extended trading following its earnings announcement, despite delivering results that exceeded analyst expectations in several areas. The social media platform reported revenue growth of 18% compared to the prior year, reaching approximately $1 billion in sales. The company posted a net loss of $47 million, or 8 cents per share, compared to net income of 38.76 million, or 6 cents per share, in the same period a year earlier.
Company executives attributed the mixed market reaction to forward-looking guidance that appeared cautious. Pinterest projected third-quarter revenue between $1.19 billion and $1.21 billion, with the midpoint aligning with analyst consensus. The guidance incorporated an expected headwind from foreign exchange rate movements based on prevailing market conditions.
Management identified several timing-related factors that would affect third-quarter performance. The relocation of Amazon’s Prime Day from the third quarter to the second quarter was expected to create an approximate half-point revenue headwind, as retailers and brands shift advertising spending accordingly. Additionally, World Cup-related advertising spending that benefited second-quarter results was not anticipated to recur in the subsequent period.
The company demonstrated strength in user engagement metrics, with global monthly active users reaching 640 million, exceeding estimates of 635 million and representing an 11% year-over-year increase. Global average revenue per user measured $1.86, surpassing projections. Adjusted earnings for the quarter totaled $311 million, substantially outpacing analyst expectations of $270 million according to StreetAccount data.
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