Pinterest shares jumped 18% on earnings, strong revenue growth

Shares of Pinterest jumped 18% in extended trading on Tuesday after the company reported first quarter results which beat analysts’ forecasts and posted its fastest revenue growth since 2021.

Here’s how the company fared compared to LSEG analysts’ expectations:

• Earnings per share: 20 cents adjusted vs. 13 cents expected
• Income: $740 million vs. $700 million expected

Revenue for the quarter jumped 23% from $602.6 million a year earlier. Pinterest’s first-quarter net loss narrowed to $24.8 million, or a loss of 4 cents a share, from $208.6 million, or a loss of 31 cents a share, a year earlier.

Pinterest reported 518 global monthly active users (MAUs) for the first quarter, up 12% year over year. Wall Street had expected MAUs of 504.9 million, according to StreetAccount. Pinterest said Gen Z is the fastest growing, largest and most engaged demographic on the platform.

The company’s average revenue per user was $1.46 for the period, while StreetAccount expected $1.40 per user.

In his first-quarter announcement, Pinterest CEO Bill Reddy said the company is achieving greater returns for advertisers because of its investments in AI and shoppability.

“We’re executing with tremendous clarity and focus, delivering new products and experiences that consumers want, and in doing so, we’re finding our best product-market fit in years,” Ready said.

Digital advertising companies like Pinterest have started to grow again after a brutal 2022, when brands curbed spending to cope with high inflation rates. Meta, A click and Google parent Alphabet reported first-quarter results last week that beat analysts’ revenue estimates.

For its second quarter, Pinterest expects to report revenue between $835 million and $850 million, which equates to growth of 18% to 20% annually. Analysts had expected revenue of $827 million.