Pinterest Q3 Revenue Up 43 Percent as Ad Spending Booms in Holiday Rush

Pinterest forecast fourth-quarter revenue growth in the high-teens percentage range.

By Reuters | Updated: 5 November 2021 17:13 IST

Pinterest Q3 Revenue Up 43 Percent as Ad Spending Booms in Holiday Rush

Pinterest said it did not face any material impact from Apple's privacy changes

Highlights

Shares of Pinterest rose 6.5 percent after the bell on Thursday
Pinterest had notched a 37 percent surge as users stuck at home
Pinterest's monthly active users grew just 1 percent to 444 million

Pinterest forecast fourth-quarter revenue growth in the high-teens percentage range, after online retailers splurging on ads before the holiday season helped the image-sharing company beat quarterly estimates.

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.

PayPal Says It Is Not Pursuing Acquisition of Pinterest

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.

Pinterest Co-Founder Evan Sharp Joins Ex-Apple Designer Jony Ive's Firm

Still, in a sign that the pandemic-accelerated shift to online shopping may be here to stay, Pinterest's quarterly revenue of $633 million (roughly Rs. 4,708 crore) surpassed analysts' average estimate of $630.9 million (roughly Rs. 4,692 crore), 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 (roughly Rs. 698 crore), or 14 cents (roughly Rs. 10) per share, during the quarter ended September 30, compared with a loss of $94.2 million (roughly Rs. 700 crore), or 16 cents (roughly Rs. 12) per share, a year ago.

Pinterest Launches New Advertising Features to Drive Shopping

Excluding items, it gained 28 cents (roughly Rs. 21) per share, above estimates of 23 cents (roughly Rs. 17) per share.

© Thomson Reuters 2021

How's Nokia brand licensee trying to compete against Realme and Xiaomi in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.