Pinterest said Monday that the company was growing revenue despite a difficult environment for advertising.
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Pinterest stock was surging in extended trading Monday after the social media firm edged out second-quarter sales expectations even as concerns about the economy have weighed on advertisers.
Pinterest reported second-quarter revenue up 9% year over year to $665.9 million. Analysts polled by FactSet had forecast sales of $664.7 million. Non-GAAP earnings of 11 cents per share was below analyst expectations for 18 cents a share, according to FactSet.
New CEO Bill Ready said in the earnings release that the revenue growth came despite uncertainty facing the platform’s advertisers.
“We accelerated our investment in shopping and ecommerce this quarter, and I am thrilled by the dedication of our leaders and employees to continue to build a positive place on the Internet,” Ready added. “Pinterest is uniquely positioned to tackle unsolved problems in our industry, capitalize on long-term digital commerce trends and help people go from inspiration to realization.”
Pinterest stock surged 19% to $23.85 in after-hours trading. The stock had traded as high as $66 in the past 52 weeks.
Ready, an Alphabet alum, took over in the role in June, succeeding Ben Silbermann, who is now the board’s executive chairman. In July, activist investor Elliott Management revealed a 9% stake. On Monday, in a press release issued after Pinterest reported results, Elliott commended Silbermann and the board on the leadership change.
“Pinterest is a highly strategic business with significant potential for growth, and our conviction in the value-creation opportunity at Pinterest today has led us to become the Company’s largest investor,” the firm said. “As the market-leading platform at the intersection of social media, search and commerce, Pinterest occupies a unique position in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader to oversee Pinterest’s next phase of growth.”
Pinterest stock has struggled in recent months as advertising focused firms, including Snap (SNAP) and Roku (ROKU), warned about pullbacks in advertiser spending amid economic concerns.
For the third quarter, Pinterest expects revenue, on a percentage basis, will grow in the mid-single digits year over year. The company expects slightly greater foreign exchange headwinds than in the second quarter. It also expects non-GAAP operating expenses to grow by a low-double-digits percent quarter over quarter.
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