Talk about a stock getting a lift from earnings.
rose by one-third on Friday morning after releasing second-quarter results that were far better than expected.
Pinterest (PINS) said it lost seven cents a share, while revenue rose 4.2% year over year to $272.3 million. Analysts were looking for a 13 cents-per-share loss on revenue of $254.8 million.
Global monthly active users grew 39% year over year to 416 million, easily ahead of consensus expectations of 379 million.
The company didn’t provide a full-year outlook, citing the pandemic, but did say it was “encouraged” by revenue growth of about 50% year over year in the month of July through Wednesday.
It expects its top line will grow about 30% year over year for the third quarter as a whole, and said it would “evaluate …levels of spending as the environment evolves.”
Pinterest was up 33.2% to $33.55 in early trading following the report. There was a lot to like in the quarter: Management noted that searches were up 50% year over year, while the creation of Pinterest boards (curated collections of photos) were up 40%.
Pinterest was up 35% year to date through Thursday’s close.
(TWTR) were up about 14% over the same period.
It’s a tricky time for social media. On the one hand, with more people staying at home, there’s more time to spend scrolling on apps, but on the other hand affiliate marketing with influencers is one of the first places companies have cut their budgets in response to the Covid-19 pandemic.
Yet Pinterest appears to be navigating the situation well, going by the figures in the most recent report. While average revenue per user was down 21% year over year to 70 cents, that was ahead of expectations of 67 cents, and the company called out its partnership with
(SHOP) in driving merchant growth on its platform.
The results were also a welcome change from a downbeat first quarter, reported in May.