Pinterest’s first-quarter earnings surpassed the expectation of analysts. Its stock was up more than 6 percent on the announcement.
For the first quarter of 2022, the company reported earnings per share of 10 cents, adjusted, compared to the estimate of 4 cents that analysts had expected. Revenue for the quarter was $575 million compared with the $573 million that analysts estimated.
In the first quarter, the company said its global monthly active users declined 9 percent from the same period a year ago to 433 million. According to Factset and StrreetAccount, expectations for global monthly active users were 347.9 million. Pinterest said that the post-pandemic decline, as well as lower search traffic caused by a change in Google’s algorithm, was to blame for its decline in global monthly active users.
The company reported global average revenue per user of 41.33. This was up 28 percent from a year ago and surpassed Wall Street expectations of $1.31.
Shares of Pinterest were down nearly 3 percent before the company issued its results. The macroeconomic conditions, especially the Russia-Ukraine conflict and supply chain challenges have been a big source of worry for investors. Apple’s privacy changes and inflation have pushed down advertising income for many companies. The company’s stock went up more than 6 percent after announcing its results.
In its shareholder letter, Pinterest said the trends leading to its revenue growth “were offset by macro headwinds, including supply chain issues and other factors, which continued to impact one of our largest segments, CPG advertisers, as well as some mid-market advertisers. In Europe, Russia’s invasion of Ukraine compounded a difficult macro environment, impacting many of our advertisers in that region,” the company added.
Pinterest said it expects second-quarter revenue to grow about 11% year over year.
