The Los Angeles Post
U.S. World Business Lifestyle
Today: March 30, 2025
Today: March 30, 2025

Pinterest forecasts downbeat revenue as competition grows; shares slump

FILE PHOTO: Pinterest logo is seen on smartphone in this illustration
July 30, 2024
Reuters - Reuters

By Juby Babu

(Reuters) -Pinterest forecast current-quarter revenue below Wall Street expectations on Tuesday as the image-sharing platform faces tough competition in a stabilizing digital advertising market, sending its shares down about 12% after hours.

The company, whose shares shed about $3 billion in value, competes with the likes of TikTok and Meta Platforms-owned Facebook and Instagram - the preferred platforms for advertisers because of their larger user base and higher engagement for targeted ads.

"After results from both PINS and GOOGL, we believe that digital ad spend remains healthy but tougher comparisons are causing trends to decelerate at a faster pace than expected. Still, we think the pullback in shares provides an enhanced opportunity," said Angelo Zino, senior equity analyst at CFRA Research.

Pinterest has also launched ad partnerships with e-commerce giant Amazon.com and Alphabet's Google, while unveiling an automated ad campaign setup tool and Pinterest Performance+, an AI-powered tool for marketers.

The company expects revenue in the range of $885 million to $900 million for the third quarter, compared with analysts' expectations of $906.6 million, according to LSEG data.

"Our revenue guidance reflects further progress against our strategic initiatives, including continued lower funnel strength and the ongoing emerging contribution from third-party demand partnerships," CFO Julia Donnelly said on an earnings call.

Revenue for the second quarter ended June 30 rose 21% to $853.7 million, higher than estimates of $847.8 million.

Pinterest's global monthly active users (MAUs) rose by 12% to 522 million in the second quarter, compared with estimates of 519.2 million.

Excluding items, Pinterest posted a profit of 29 cents per share, compared with estimates of 28 cents.

(Reporting by Juby Babu in Mexico City; Editing by Devika Syamnath)

Related Articles

Judge sets January date to hear NASCARโ€™s motion to throw out an antitrust lawsuit China's Nio, behind on growth targets, aims to tighten cost control Kroger's $25-billion deal for grocery rival Albertsons blocked by US courts Pony AI fetches $5.25 billion valuation as shares jump 15% in Nasdaq debut
Share This

Popular

Business|Economy|Political|US

Kelley Blue Bookโ€™s top editor breaks down how Trumpโ€™s auto tariffs will affect prices

Kelley Blue Bookโ€™s top editor breaks down how Trumpโ€™s auto tariffs will affect prices
Business|Economy|Political|US

Looming car tariffs have some Americans rushing to dealerships to avoid sticker shock

Looming car tariffs have some Americans rushing to dealerships to avoid sticker shock
Business|Europe|Science|Technology

Orbital rocket crashes seconds after take-off in rare European spaceport launch

Orbital rocket crashes seconds after take-off in rare European spaceport launch
Business|Health|Science|Technology|World

SpaceX is set to launch 4 people on a first-of-its-kind mission around Earthโ€™s poles. Hereโ€™s what to know

SpaceX is set to launch 4 people on a first-of-its-kind mission around Earthโ€™s poles. Hereโ€™s what to know

Technology

Business|Health|Science|Technology

23andMeโ€™s DNA data is going up for sale. Hereโ€™s why companies might want it

23andMeโ€™s DNA data is going up for sale. Hereโ€™s why companies might want it
Business|Economy|Health|Science|Technology

23andMeโ€™s rise and fall, in four charts

23andMeโ€™s rise and fall, in four charts
Business|Lifestyle|Sports|Technology|Travel

A New Hampshire ski resort bets on tech to compete with industry giants

A New Hampshire ski resort bets on tech to compete with industry giants
Business|Crime|Political|Technology|US

Over 200 โ€˜Tesla Takedownโ€™ protests take place throughout US on โ€˜Global Day of Actionโ€™ against Elon Muskโ€™s role with DOGE

Over 200 โ€˜Tesla Takedownโ€™ protests take place throughout US on โ€˜Global Day of Actionโ€™ against Elon Muskโ€™s role with DOGE