Abu Dhabi, UAEFriday 7 August 2020

Pinterest reports July sales surge as advertisers and users return

During the Covid-19 pandemic, the US company attracted more users, but it also suffered financially as some advertisers cut spending

A guest holds up a phone during the Pinterest IPO on the floor of the New York Stock Exchange on April 18, last year. Reuters
A guest holds up a phone during the Pinterest IPO on the floor of the New York Stock Exchange on April 18, last year. Reuters

Pinterest said revenue in July surged from a year earlier as advertisers and users returned to the social-sharing service.

The company estimated year-over-year sales growth of about 50 per cent for this month, through July 29.

“We are encouraged by the performance of our business,” it said in a statement on Friday. “But a tremendous amount of uncertainty remains given the ongoing Covid-19 pandemic and other factors.”

For the whole of the third quarter, Pinterest expects sales to grow in the mid-30 per cent range, year-on-year.

The San Francisco-based company lets users “pin” photos, web links and other content to digital boards with different themes. The app is popular among fans of fashion, home decorating, cooking and other hobbies.

During the Covid-19 pandemic, Pinterest has attracted more users, but it has suffered financially as some advertisers cut spending.

On Friday, the company had better news, saying second-quarter advertiser growth accelerated annually. Spending by small and medium-sized marketers comprised almost half of revenue, thanks to better automated buying tools and momentum overseas.

Revenue came in at about $272 million (Dh998.24m) in the second quarter, up 4 per cent from a year earlier and ahead of Wall Street estimates.

“I am pleased with the way we responded and remained engaged with our advertising partners,” said chief financial officer Todd Morgenfeld. “It has been encouraging to see the recovery in our business over the past few months.”

The company also said it had 416 million monthly active users, up 39 per cent from a year ago and again above analysts’ expectations. Growth was particularly strong in the US, driven by existing users returning to the service. However, the company expects slower growth in monthly active users going forward.

“In these tough times, we are seeing more and more people rely on Pinterest to cook at home, plan kids activities and set up a home office,” Ben Silbermann, chief executive of Pinterest, said in a statement.

Updated: July 31, 2020 06:19 PM

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