Category: Uncategorized

Pinterest surges on July sales lift as advertisers, users return

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 year over year. 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 in the second quarter, up 4 percent from a year earlier and ahead of Wall Street estimates, according to data compiled by Bloomberg.

“I’m 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 percent from a year ago and again above analysts’ expectations. Growth was particularly strong in the U.S., 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’re 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 officer of Pinterest, said in a statement. “Businesses are helping them turn their ideas into reality as people are increasingly discovering and buying products on Pinterest.”