Pinterest sees strong sales as ad spend skyrockets during holiday rush
Nov. 4 (Reuters) – Pinterest Inc (PINS.N) predicts fourth-quarter revenue growth in the high percentage range for teens, after online retailers embarked on advertisements ahead of the holiday season years that have helped the image-sharing company beat quarterly estimates.
The company’s shares rose 6.5% after Thursday’s bell, as increased demand from large retail advertisers and growth in its international business boosted third-quarter revenue by 43%.
Advertisers in the consumer packaged goods segment, however, were affected by constraints in the global supply chain, which impacted Pinterest’s revenue growth rate.
In an appeal after the results, the company also said it had not suffered any material impact from Apple’s privacy changes (AAPL.O), which made it difficult for social media companies to target audiences and the measurement of advertising capacities.
Pinterest’s monthly active users (MAU), meanwhile, grew only 1% to 444 million, missing Factset’s estimate of 460 million. Last year, the company saw a 37% increase as users stuck at home turned to social media for entertainment.
“We believe the slowdown is due to the unfolding of the pandemic,” CFO Todd Morgenfeld said in an interview. Many GenZ users are returning to school, while others who had used the app to explore kitchen and home decor projects during the closures are now venturing further, he added.
Still, a sign that the pandemic’s accelerated shift to online shopping may be here to stay, Pinterest’s quarterly revenue of $ 633 million topped analysts’ average estimate of $ 630.9 million, according to the reports. IBES data from Refinitiv.
Its users, called “pinners”, using the app’s shopping features are up 60% from a year ago.
Net income was $ 94 million, or 14 cents per share, in the quarter ended September 30, from 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.
Reporting by Nilanjana Basu and Nivedita Balu in Bengaluru; Editing by Devika Syamnath
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