Pinterest (PINS) Q2 2022 earnings

A woman walks past a sign at Pinterest’s headquarters in the South of Market neighborhood of San Francisco.

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Pinterest The stock jumped on better-than-expected user numbers even as earnings and revenue missed estimates, and the company gave weak guidance for the third quarter.

Activist Investor Elliott Management private confirmation that it’s a top Pinterest investor and said it has “belief in the value creation opportunity” at the company.

This is how the company did it.

  • Income: Adjusted 11 cents per share versus 18 cents per share expected, according to Refinitiv.
  • Turnover: $666 million versus $667 million expected, according to Refinitiv.

Pinterest speak Global monthly active users fell 5% from a year earlier to 433 million. While such a drop is alarming for a social media app that relies on eyeballs to attract advertisers, analysts had expected a steeper drop to 431 million.

The company’s financials are dismal, following trends in the social media market. Facebook parents Meta, Twitterand Snap all of report second quarter income that miss top and bottom, and all attributed to a weak online advertising market to their dismal results.

More troubling than the second-quarter results is Pinterest’s commentary on what to expect this quarter. The company said it estimates third-quarter revenue to grow “mid-single-digit year-over-year,” below analysts’ forecast for sales growth of 12.7. %.

In a letter to investors, Pinterest said economic challenges are keeping marketers reeling from spending.

“The macroeconomic environment has created significant uncertainty for our advertiser partners,” Pinterest said in the letter. “The company said it noticed” lower-than-expected demand from US big-box retailers and mid-range advertisers, who have pulled back on ad spend due to concerns about weakening them. weak consumer demand. “

Pinterest says its Q3 guidance takes into account “slightly larger forex whirlwinds” from the previous quarter.

In June, Pinterest co-founder Ben Silbermann step down was the company’s CEO and was replaced by Bill Ready, formerly the leader of By Google commercial unit. Pinterest’s hire of Ready points to a deeper push into e-commerce and online retail.

Elliott’s involvement with the company is report in the July issue of The Wall Street Journal, said at the time that the company had built up more than 9% stake in the company. After Pinterest’s results were announced on Monday, Elliott confirmed it was the company’s largest shareholder and said he was pleased with Ready’s progress.

“As the market leader at the intersection of social media, search, and commerce, Pinterest occupies a unique place in the advertising and shopping ecosystem, and CEO Bill Ready is the right leader. to oversee Pinterest’s next phase of growth,” Elliott said in the statement.

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