Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
Ad rebound drives Pinterest revenue beat; shares surge
Published Jul 31, 2020 07:37AM ET
Updated Jul 31, 2020 11:15AM ET
© Reuters. Screens display the company logo for Pinterest Inc. during the company's IPO on the front of the NYSE in New York
(Reuters) - Image sharing company Pinterest Inc (N:PINS) said advertising demand began to improve in May as it reported better-than-expected quarterly results, sending its shares nearly 28% higher.
More people turned to Pinterest's platform for content to keep themselves entertained during coronavirus lockdowns, leading to a 39% jump in monthly active users to 416 million in the quarter, beating estimates of 372.7 million.
In a post-earnings call, Chief Financial Officer Todd Morgenfeld said the ad boycott on Facebook's (O:FB) platform gave Pinterest "an opportunity to win some budgets and educate advertisers about how and why Pinterest is different."
Ad spend recovered from a slump since mid-March as economic activity resumed following the easing of lockdowns, Morgenfeld said.
Both Google (O:GOOGL) and Facebook (O:FB), which rely heavily on digital advertisement, reported strong ad sales on Thursday.
Pinterest also benefited from its updated shopping feature, with a 50% growth in users who visited shopping-only feeds in the first half of the year.
Graphic: Rise in Pinterest's monthly active users - https://graphics.reuters.com/PINTEREST-RESULTS/jbyprkxbyve/chart.png
Pinterest, which had withdrawn its full-year outlook in April, now expects current-quarter revenue to increase in the mid-30% range year-over-year, with revenue growth of about 50% for this month through July 29.
The company slashed total expenses by about 74%, helping it narrow net loss to $100.7 million in the quarter ended June 30 from a loss of $1.16 billion last year.
Excluding items, Pinterest reported a loss of 7 cents per share, smaller than an estimate of 14 cents.
Total revenue rose 4% to $272 million, beating analysts' average estimate of $251.2 million, according to Refinitiv IBES data.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.