Shares of the company rose 6.5 percent after the bell on
Thursday, as increased demand from large retail advertisers and growth in its
international business boosted third-quarter revenue 43 percent.
Advertisers in the consumer packaged goods segment, however,
were hurt by global supply chain constraints, impacting Pinterest's revenue
growth rate.
In a post earnings call, the company also said it did not
face any material impact from Apple's privacy changes which have made it
difficult for social media companies to target audiences and measure
advertising capabilities.
Pinterest's monthly active users (MAU), meanwhile, grew just
1 percent to 444 million, missing Factset estimates of 460 million. Last year,
the company had notched a 37 percent surge as users stuck at home turned to
social media to keep themselves entertained.
"We believe the slowdown was due to the pandemic
unwind," Chief Financial Officer Todd Morgenfeld said in an interview.
Many GenZ users are returning to school, while others who had used the app to
explore cooking and home decor projects during lockdowns are now venturing out
more, he added.
Still, in a sign that the pandemic-accelerated shift to
online shopping may be here to stay, Pinterest's quarterly revenue of $633
million surpassed analysts' average estimate of $630.9 million, according to
IBES data from Refinitiv.
Its users, called "pinners", using the app's
shopping features increased 60 percent from a year ago.
Net income was $94 million or 14 cents per share, during the
quarter ended September 30, compared with a loss of $94.2 million, or 16 cents
per share, a year ago.
Excluding items, it gained 28 cents per share, above
estimates of 23 cents per share. © Reuters
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