Shares of Pinterest (NYSE:PINS) are up more than 8% in premarket trading Thursday after the company reported better-than-expected Q1 2022 EPS.
The social media company reported an adjusted EPS of 10c, topping the consensus estimates of 4c. Revenue came in at $575 billion, just above the analyst consensus of $573 million.
The number of global MAUs totaled 433 million in the quarter, down 9% YoY and missing the consensus projection of 437.9 million. PINS reported global average revenue per user of $1.33, up 28% YoY and compared to consensus estimates of $1.31.
Pinterest expects Q2 revenue to grow roughly 11% YoY. The social media company noted that the trends that drove revenue growth “were offset by macro headwinds, including supply chain issues and other factors, which continued to impact one of our largest segments, CPG advertisers, as well as some mid-market advertisers.”
“In Europe, Russia’s invasion of Ukraine compounded a difficult macro environment, impacting many of our advertisers in that region," the company said.
Stifel analyst Mark Kelley commented:
“We believe management is making the right product changes, and we are hopeful that efforts to spur engagement bear fruit, but we need to see more evidence of stabilization before we get more positive,” Kelley said in a client note.
Bank of America analyst Justin Post lowered the price target to $38.00 per share from $46.00 as investments are driving better engagement.
“We see Pinterest as a high quality platform for advertisers and think users could bottom in 2Q. However, given an uncertain transition in the Pinterest use case, we are reiterating our Neutral rating,” Post added.
By Senad Karaahmetovic