Pinterest (PINS) Q2 2022 earnings

Pinterest (PINS) Q2 2022 earnings

A woman walks past a sign at Pinterest’s headquarters in San Francisco’s South of Market neighborhood.

Smith collection | gado | Stock photos | Getty Images

pinterest Shares jumped on better-than-expected user numbers, even as earnings and revenue missed estimates and the company gave a weak third-quarter guidance.

Activist Investor Elliott Management confirmed separately that he is Pinterest’s largest investor and said he was “convinced of the value creation opportunity” of the company.

Here’s how the company did.

  • Earnings: Adjusted 11 cents per share vs. 18 cents per share expected, according to Refinitiv.
  • Revenue: $666 million vs $667 million expected, according to Refinitiv.

pinterest said global monthly active users decreased 5% from a year earlier to 433 million. While that kind of drop is alarming for a social media app that relies on eyeballs to lure advertisers, analysts were expecting a steeper drop to 431 million.

The company’s finances were bleak, following a trend in the social media market. Parent Facebook Meta, Twitterand Instantaneous everything reported second quarter earnings this lack top and bottom, and all attributed the weak online advertising market to their poor results.

More troubling than its second quarter results was Pinterest’s comment on what’s to come this quarter. The company said it estimates third-quarter revenue to grow “by a mid-digit on a year-over-year percentage basis,” below analysts’ forecast for sales growth of 12. 7%.

In a letter to investors, Pinterest said economic challenges are prompting marketers to cut spending.

“The macroeconomic environment has created significant uncertainty for our advertiser partners,” Pinterest said in the letter. on weakening consumer demand.”

Pinterest said its third-quarter forecast took into account “slightly larger currency headwinds” than the previous quarter.

In June, Pinterest co-founder Ben Silbermann resigned as CEO of the company, and was succeeded by Bill Ready, previously the head of from google business unit. Pinterest’s hiring of Ready indicated a deeper push into e-commerce and online retail.

Elliott’s involvement in the business was reported in July by the Wall Street Journal, which claimed at the time that the company had acquired a stake of more than 9% in the company. After Pinterest’s earnings release on Monday, Elliott confirmed he was the company’s largest shareholder and said he was pleased with Ready’s progress.

“As the market-leading platform at the intersection of social media, search and commerce, Pinterest is uniquely positioned in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader for oversee Pinterest’s next phase of growth,” Elliott said in a statement.

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