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Pinterest, Inc. (PINS - Free Report) reported strong second-quarter 2024 results, with the bottom and top line surpassing the respective Zacks Consensus Estimate. The San Francisco-based Internet content provider reported revenue growth year over year, driven by strong user growth across all regions.
Its lower funnel solutions suite, including mobile deep linking (MDL), API for conversions and clean rooms, and Direct Links, is providing a significant return on investments to advertisers.
Management’s focus on improving shoppability and monetization potential across the platform and the incorporation of advanced AI-integrated tools have supported the top line.
Net Income
On a GAAP basis, the company reported a net income of $8.9 million or 1 cent per share against a net loss of $34.9 million or a loss of 5 cents per share in the year-ago quarter. Non-GAAP net income improved to $207.2 million or 29 cents per share from $142.1 million or 21 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by a penny.
During the quarter, revenues rose to $853.7 million, up 21% from prior-year quarter’s revenues of $708 million. The top line beat the Zacks Consensus Estimate of $ 848 million. Pinterest witnessed 12% year-over-year growth in global monthly active users (MAUs) to 522 million from year-earlier quarter’s 465 million.
Healthy growth in MAUs is a compound effect of a range of initiatives focused on personalization, increasing shoppability and actionability and creating a positive alternative to other social media platforms. The company continues to invest in AI to generate highly relevant content across users’ multi-session commercial journeys.
Pinterest is witnessing solid traction among Gen Z users, who account for more than 40% of the users and is one of the fastest-growing demographics on the platform. Management's decision to increase the accessibility of MDL products to more advertisers has improved shoppability on the platform. This has significantly boosted shopping ads revenue generation.
In addition, the company is taking various initiatives to bring more actionable content on the platform from a wide range of sources such as users, creators, publishers and retailers. This has resulted in a solid improvement in engagement metrics like sessions, impressions and saves across all regions.
Pinterest is also expanding its third-party partner ecosystem. The company is partnering with Amazon Ads in the United States and Google Ads Manager in unmonetized international markets.
The United States and Canada generated $673 million in revenues, up 19% year over year. Solid momentum in retail and emerging verticals, including financial services and technology, supported the net sales.
Revenues from Europe totaled $143 million, up 25% from $114 million in the year-ago quarter. Healthy traction in retail ensured top-line growth in this region.
Net sales from the Rest of World rose to $38 million from $29 million recorded in the prior-year quarter.
MAUs from the United States and Canada were 98 million, up 3% year over year. The Rest of World registered MAUs of 288 million, up 17% from 246 million in the year-earlier quarter. MAUs from Europe increased to 136 million from 124 million in the year-ago quarter.
In the June quarter, the global average revenues per user (ARPU) stood at $1.64 compared with the year-ago quarter’s figure of $1.53. ARPU in Europe improved 14% year over year to $1.03 while the United States and Canada rose 16% to $6.85. ARPU from the Rest of World increased 13% year over year to 13 cents.
Other Details
Adjusted EBITDA was $179.9 million in second-quarter 2024, up from the prior-year quarter’s tally of $107 million.
Total costs and expenses were $875.1 million, up from $781.3 million in the year-ago quarter. On a GAAP basis, research and development expenses rose to $ 312.8 million from $269.4 million.
Cash Flow & Liquidity
For the first six months of 2024, the company generated $462.6 million of cash from operating activities compared with $246.2 million in the prior-year period. As of Jun 30, 2024, Pinterest had cash and cash equivalents of $1.38 billion, with $151.7 million of operating lease liabilities.
Outlook
For the third quarter of 2024, Pinterest expects revenues in the range of $885-900 million, indicating 16-18% year-over-year growth. Non-GAAP operating expenses are projected in the range of $485-500 million, indicating 17-20% growth year over year.
Zacks Rank
Pinterest currently carries a Zacks Rank #3 (Hold).
Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.02 per share, suggesting a decline of 684.6% from the year-ago reported figure.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, indicating growth of 3.4% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.8%. AKAM delivered an average earnings surprise of 5.4% in the last four reported quarters.
Motorola Solutions, Inc. (MSI - Free Report) is set to release second-quarter 2024 earnings on Aug 1. The Zacks Consensus Estimate for earnings is pegged at $3.00 per share, implying growth of 13.2% from the year-ago reported figure.
Motorola has a long-term earnings growth expectation of 9.5%. MSI delivered an average earnings surprise of 7.5% in the last four reported quarters.
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Pinterest (PINS) Q2 Earnings Beat Estimates, Revenues Surge Y/Y
Pinterest, Inc. (PINS - Free Report) reported strong second-quarter 2024 results, with the bottom and top line surpassing the respective Zacks Consensus Estimate. The San Francisco-based Internet content provider reported revenue growth year over year, driven by strong user growth across all regions.
Its lower funnel solutions suite, including mobile deep linking (MDL), API for conversions and clean rooms, and Direct Links, is providing a significant return on investments to advertisers.
Management’s focus on improving shoppability and monetization potential across the platform and the incorporation of advanced AI-integrated tools have supported the top line.
Net Income
On a GAAP basis, the company reported a net income of $8.9 million or 1 cent per share against a net loss of $34.9 million or a loss of 5 cents per share in the year-ago quarter.
Non-GAAP net income improved to $207.2 million or 29 cents per share from $142.1 million or 21 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by a penny.
Pinterest, Inc. Price and Consensus
Pinterest, Inc. price-consensus-chart | Pinterest, Inc. Quote
Revenues
During the quarter, revenues rose to $853.7 million, up 21% from prior-year quarter’s revenues of $708 million. The top line beat the Zacks Consensus Estimate of $ 848 million. Pinterest witnessed 12% year-over-year growth in global monthly active users (MAUs) to 522 million from year-earlier quarter’s 465 million.
Healthy growth in MAUs is a compound effect of a range of initiatives focused on personalization, increasing shoppability and actionability and creating a positive alternative to other social media platforms. The company continues to invest in AI to generate highly relevant content across users’ multi-session commercial journeys.
Pinterest is witnessing solid traction among Gen Z users, who account for more than 40% of the users and is one of the fastest-growing demographics on the platform. Management's decision to increase the accessibility of MDL products to more advertisers has improved shoppability on the platform. This has significantly boosted shopping ads revenue generation.
In addition, the company is taking various initiatives to bring more actionable content on the platform from a wide range of sources such as users, creators, publishers and retailers. This has resulted in a solid improvement in engagement metrics like sessions, impressions and saves across all regions.
Pinterest is also expanding its third-party partner ecosystem. The company is partnering with Amazon Ads in the United States and Google Ads Manager in unmonetized international markets.
The United States and Canada generated $673 million in revenues, up 19% year over year. Solid momentum in retail and emerging verticals, including financial services and technology, supported the net sales.
Revenues from Europe totaled $143 million, up 25% from $114 million in the year-ago quarter. Healthy traction in retail ensured top-line growth in this region.
Net sales from the Rest of World rose to $38 million from $29 million recorded in the prior-year quarter.
MAUs from the United States and Canada were 98 million, up 3% year over year. The Rest of World registered MAUs of 288 million, up 17% from 246 million in the year-earlier quarter. MAUs from Europe increased to 136 million from 124 million in the year-ago quarter.
In the June quarter, the global average revenues per user (ARPU) stood at $1.64 compared with the year-ago quarter’s figure of $1.53. ARPU in Europe improved 14% year over year to $1.03 while the United States and Canada rose 16% to $6.85. ARPU from the Rest of World increased 13% year over year to 13 cents.
Other Details
Adjusted EBITDA was $179.9 million in second-quarter 2024, up from the prior-year quarter’s tally of $107 million.
Total costs and expenses were $875.1 million, up from $781.3 million in the year-ago quarter. On a GAAP basis, research and development expenses rose to $ 312.8 million from $269.4 million.
Cash Flow & Liquidity
For the first six months of 2024, the company generated $462.6 million of cash from operating activities compared with $246.2 million in the prior-year period. As of Jun 30, 2024, Pinterest had cash and cash equivalents of $1.38 billion, with $151.7 million of operating lease liabilities.
Outlook
For the third quarter of 2024, Pinterest expects revenues in the range of $885-900 million, indicating 16-18% year-over-year growth. Non-GAAP operating expenses are projected in the range of $485-500 million, indicating 17-20% growth year over year.
Zacks Rank
Pinterest currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.02 per share, suggesting a decline of 684.6% from the year-ago reported figure.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, indicating growth of 3.4% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.8%. AKAM delivered an average earnings surprise of 5.4% in the last four reported quarters.
Motorola Solutions, Inc. (MSI - Free Report) is set to release second-quarter 2024 earnings on Aug 1. The Zacks Consensus Estimate for earnings is pegged at $3.00 per share, implying growth of 13.2% from the year-ago reported figure.
Motorola has a long-term earnings growth expectation of 9.5%. MSI delivered an average earnings surprise of 7.5% in the last four reported quarters.