Pinterest Revenue (PINS) Q2 2022

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

Smith Collection | Gado | Photo archive | Getty Images

pinterest the stock rebounded on more than expected user numbers, even as earnings and earnings fell short of estimates and the company gave weak guidance for the third quarter.

Activist investor Elliott Management confirmed separately that it is Pinterest’s main investor, and stated that he is “convinced of the opportunity to create value” in the company.

Here’s how the company did it.

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

pinterest said monthly active users worldwide fell 5% year-over-year to 433 million. While such a drop is worrisome for a social media app that relies on eyeballs to attract advertisers, analysts had expected a sharper decline to 431 million.

The company’s finances were bleak, following the trend in the social media market. facebook parent Meta, Twitteras well as Click all informed second quarter earnings what missed in the top and bottom lines, all attributing their dismal results to a weak online ad market.

More worrisome than the second quarter results was Pinterest’s commentary about what’s expected this quarter. The company said it expects third-quarter revenue to grow “by mid-single digits year-over-year as a percentage,” below analysts’ forecasts of 12.7% sales growth.

In a letter to investors, Pinterest said that economic problems are forcing marketers to cut costs.

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

Pinterest said its third-quarter guidance includes “slightly stronger FX headwinds” than the previous quarter.

In June, Pinterest co-founder Ben Silbermann resigned as CEO of the company and was replaced by Bill Ready, formerly head of Google unit of trade. Ready’s hiring on Pinterest points to a deeper push towards e-commerce and online retail.

Elliott’s involvement with the company was informed in July, The Wall Street Journal reported that the firm had acquired more than 9% of the company’s shares. After Pinterest’s results were released on Monday, Elliot 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 commerce ecosystem, and CEO Bill Ready is the right leader to oversee Pinterest’s next phase of growth,” said Elliott. statement.

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