It turns out that stay-at-home orders translated to more Pinterest boards, boosting the social media site’s revenue, according to its second-quarter earnings report posted Friday.
Between March and the end of June, Pinterest’s revenue jumped 4 percent to more than $272 million, compared with around $261 million a year ago, according to its Securities and Exchange Commission filing. The company reported a loss in earnings per diluted share of $0.17.
Pinterest had 416 million global active users per month during its second quarter, an almost 40 percent jump from the site’s audience a year ago. The San Francisco-based image-sharing company generates revenue through ads on its website and mobile app.
Pinterest lost revenue during March as advertisers pulled back as an initial response to the pandemic, but the site saw an uptick in growth after April through the end of the quarter, the company said. With more people staying home, Pinterest’s user engagement jumped, including users creating more boards, saving pins and new searches. And even as stay-at-home orders eased in July, engagement continued to grow, the company said.
“This quarter we reached a milestone,” Pinterest co-founder and chief executive Ben Silbermann said in a news release. “In these tough times, we’re seeing more and more people rely on Pinterest to cook at home, plan kids activities and set up a home office. Businesses are helping them turn their ideas into reality as people are increasingly discovering and buying products on Pinterest.”
Facebook reported more than $18 billion in revenue in its second quarter, a more than 10 percent jump from a year ago, as well as a surge in new users in its earnings release Thursday.
But Pinterest thinks it has a leg up on Facebook because of an ad boycott of the platform. In a post-earnings call, Pinterest CFO Todd Morgenfeld said Pinterest is attracting more advertisers leaving other platforms, especially in July, but it’s hard to quantify.
Source: The Washington Post