The company increased its guidance for the rest of the year.
It’s been a good week for Pinterest investors. The company’s shares are up thanks to a strong earnings report. During the second quarter, Pinterest added more monthly users and beat revenue expectations. The company also raised its full-year guidance.
As of Friday morning, the company’s shares are up 20% and inching closer to its 52-week high of $35.29 per share. Here is an overview of the earnings report as well as what we can expect from Pinterest going forward.
Details on the Earnings Report
Pinterest is one of several tech “unicorns” to go public in 2019. And the company has continued to outperform analyst expectations since its March IPO.
During the second quarter, the company’s revenue rose 62% to reach $261 million, beating estimates of $236 million. The company did lose did money, but it reported losses of $26 million instead of the $39 million analysts were anticipating.
But best of all, Pinterest reported huge growth in users. The company’s global monthly active users rose 30% to reach 300 million during the second quarter. The majority of this growth came from international users.
Monthly international users increased by 38% to reach 215 million. And the company’s U.S. base grew by 13% to reach 85 million.
Pinterest’s outlook is so strong that the company raised its guidance for the rest of 2019. The company expects revenue to range from $1.095 billion to $1.115 billion. In comparison, analysts were expecting the company’s revenue to reach $1.079 billion for the year.
What’s Next for Pinterest?
There’s a lot to be excited about when it comes to Pinterest. The company continues to experience growth across the board and take steps to expand its services and improve user experience.
During the call with investors, CEO Ben Silbermann said that the company is developing a mobile interface that will make it easier for small businesses to advertise on the platform. This will allow the company to increase its advertising revenue and compete with larger companies like Facebook.
And unlike Facebook, Pinterest has managed to avoid much of the scrutiny over user privacy concerns. However, the company does take steps to protect the privacy of its users. Pinterest users can create private boards and opt-out of receiving product recommendations.
