Pinterest Inc (NYSE: PINS) opened about 15% up on Friday even though the social media service reported to have swung to a loss in its fiscal third quarter.
Why are Pinterest shares up this morning?
Pinterest shares are responding to what was still a better-than-expected quarterly performance.
Lost $65.2 million that translates to 10 cents per shareHad $94 million income last year or 14 cents a shareOn an adjusted basis, EPS came in at 11 cents per shareRevenue climbed 8.0% year-on-year to $684.6 millionConsensus was 6 cents a share on $666.7 million revenueGlobal MAUs remain unchanged (YoY) at 445 millionAverage revenue per user went up 11%.
Pinterest is resilient in the face of ad slowdown
Pinterest shares were cheerful this morning also because the earnings report suggested the image sharing service was holding fairly well despite the ad slowdown. In the press release, CEO Bill Ready said in the press release:
Despite challenging macro, we’re delivering performance and a distinct value proposition to advertisers, reaching users across the full funnel. We’re deepening our monetisation per user and building personalised and relevant experiences.
Pinterest reiterated “currency” as a notable headwind this quarter and said its impact will slightly worsen in Q4. Consequently, it’s now calling for a mid-single-digit growth in revenue in its fourth financial quarter.
Pinterest shares are still down more than 35% for the year.
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