Shares of Pinterest soared by 16% in after-hours trading on Tuesday following the release of the company’s first-quarter financial results, which surpassed analyst predictions and demonstrated its fastest revenue growth since 2021. Here is a breakdown of how Pinterest performed compared to estimates provided by LSEG:
Revenue for the quarter amounted to $673 million, representing an increase of 23% from the previous year’s figure of $549 million. The company also reported a narrower net loss in Q1 at $24.8 million or 4 cents per share compared to last year’s net loss of $208.6 million or 31 cents per share.
Pinterest revealed that it had 518 monthly active users (MAUs) for the quarter, which represented an increase by 12% from a year ago. StreetAccount’s estimates suggested MAU figures would be lower at 504.9 million. The company also reported average revenue per user of $1.46 during Q1 compared to analyst predictions of $1.40 per user, as published in StreetAccount.
During the release for first-quarter results, Bill Ready (Pinterest’s CEO) asserted that they were making strides in advancing returns on investment through their investments in AI and shoppability features. “We’re executing with tremendous clarity and focus, shipping new products and experiences that users want, and as a result we are finding our best product market fit in years,” he said.
Pinterest’s stock price has been buoyed by the recent resurgence of digital advertising companies after experiencing difficult times last year when businesses were tightening their purse strings to manage inflationary pressures. Meta (formerly Facebook), Snap and Google parent Alphabet all reported better-than-expected revenue figures for Q1 2023, which was a welcome relief following the challenging period in 2022.
Pinterest has forecasted second quarter revenues of between $835 million to $850 million – translating to a potential rise ranging from 18% to 20 % over last year’s figure when adjusted for comparable terms (YOY). This was marginally higher than the StreetAccount estimate, which suggested revenue figures would be around $827m. Pinterest will host its quarterly call with investors at 4:30 p.m ET on Tuesday evening to further discuss these results and answer any questions from shareholders or analysts.
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