Pinterest Inc. said revenue in the current quarter will rise in line with analysts’ estimates, disappointing some investors after digital-ad rivals posted surprisingly upbeat results last week. Shares fell 4% in premarket trading.
The company, which runs a social media site for posting inspirational images, said sales rose 6% to $708 million in the period ended June 30. That exceeded the $699 million that analysts projected, according to the average of estimates compiled by Bloomberg. By contrast, Meta Platforms Inc. delivered double-digit percentage growth, with sales expected to accelerate later this year.
After one year in the position, Pinterest Chief Executive Officer Bill Ready wants to expand the business model beyond advertising and into shopping, increasing the amount of time users spend on the platform. In May, Pinterest announced an advertising partnership with Amazon.com Inc., aiming to make shopping easier on the site. The company’s push for shoppable content follows similar efforts from other social media platforms, including Meta’s Instagram and ByteDance Ltd.’s TikTok.
“Shopping is working on Pinterest and we’ve had some great partnerships that are aiding with that,” Ready said in an interview Tuesday. “There’ll be more of those to go.”
The pinboard-style digital-search company said monthly users increased 8%, to 465 million, from a year earlier. Earnings were 21 cents per share, compared with the 11-cents-per-share estimate.
Analysts expected revenue in the current quarter to rise 8% to $739.9 million.
Whether people would shop on Pinterest “was a big question a year ago,” Ready said. “We have answered that question definitively.”
