Pinterest shares fall on lukewarm sales guidance
Pinterest reported better-than-expected earnings and revenue for the second quarter, though its forecast was online in line with estimates.
Pinterest shares declined 7% in extended trading on Tuesday following the company's announcement of solid earnings but less optimistic sales guidance. Earnings surpassed expectations, with sales increasing 18% to $998.2 million, while the net loss narrowed to $47 million or 8 cents per share. This marks an improvement from the previous year where the company reported a net loss of $47 million.
CEO Bill Ready highlighted the platform's scale and strength in a statement. Revenue guidance for the current quarter ranges between $1.19 billion and $1.21 billion, in line with analyst expectations. The company cited a modest foreign exchange impact and the shift of Amazon's Prime Day from Q3 to Q2 as factors affecting third-quarter guidance.
Adjusted earnings for Q2 topped projections, reaching $311 million, with 640 million global monthly active users and a global average revenue per user of $1.86, beating estimates. Pinterest CEO Bill Ready also discussed the company's utilization of open-source artificial intelligence models, emphasizing their cost-effectiveness and strategic importance.
Despite the growth in AI adoption, Donnelly warned that AI-related compute and token spend are expected to rise, with investments considered ROI positive and planned in the outlook provided.
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