Pinterest expects slower quarterly revenue growth as ad competition heats up

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

Aug 4 : Image-sharing platform Pinterest forecast slower revenue growth for the third quarter on Tuesday, signaling tough competition for digital advertising from bigger players including Meta's Instagram, sending its shares down 6 per cent in extended trading.

Pinterest has been expanding Performance+, its AI-powered suite for advertisers, to attract more marketers by helping them optimize and scale their campaigns with less manual effort.

As Meta continues to improve its Advantage+ ad automation tools, Reddit launched a broadly similar product and with ads becoming a larger focus for OpenAI, competition is expected to increase further.

Last month, Google revamped Google Images with AI-powered personalized feeds and visual discovery features resembling Pinterest, indicating a broader push for AI-driven search and shopping by the search-engine giant.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

Pinterest expects its current-quarter revenue to be in the range of $1.19 billion to $1.21 billion, representing a 13 per cent to 15 per cent growth, compared with analysts' average estimate of $1.20 billion, according to data compiled by LSEG.

That is slower than the 18 per cent revenue growth in its second quarter. The company reported $1.18 billion in revenue for the three months ended June 30, beating estimates of $1.15 billion.

"AI is at the heart of our momentum and is a clear accelerant for our business," Pinterest CEO Bill Ready said in a statement.

Its global monthly active users rose 11 per cent to 640 million in the second quarter from a year ago, while average revenue per user rose 7 per cent to $1.86.

Earlier this year, the company completed its acquisition of tvScientific, a move aimed at extending advertisers’ reach beyond social media and into connected TV and giving Pinterest a broader pool of ad budgets.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here