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In addition to announcing the strategic partnership, Pinterest released its earnings for the first quarter.
Pinterest (NYSE: PINS) has announced a partnership with Amazon (NASDAQ: AMZN) to bring third-party ads to the platform. The image-sharing and social media service noted that the new multi-year strategic ad partnership makes the e-commerce giant its first partner on third-party ads. Pinterest added that it chose Amazon as its users’ engagement with shoppable content on its platform continues to grow.
Pinterest also had its shares from the unpleasant economic situation that impacted businesses. While the company struggled to survive the macroeconomic forces, it also promised to adapt to the changing environment. The collaboration with Amazon could help Pinterest in offering consumers a more seamless buying experience as the latter has been working on connecting product inspiration to purchases. Pinterest said the multi-year partnership with Amazon will help it scale its efforts on giving the best to its users.
Pinterest and Amazon Team Up
According to Pinterest CEO Bill Ready, the deal with Amazon is a milestone. Also, it will contribute to the existing great brands on the platform. He added that users could access a more comprehensive and first-class buying experience. At the same time, it will offer greater performance for brands and advertisers. Speaking further on the partnership, which will be a multi-quarter implementation expected to begin rolling out before the end of the year, the CEO continued the move tallies with the company’s goal of bringing users’ dreams to life by making every Pin shoppable.
Additionally, Pinterest explained in its blog post how the new relationship with Amazon is an impactful decision.
“Over 463 million people come to Pinterest each month to create a life they love. Brands and products are a critical piece of this journey, enabling Pinners to move easily from inspiration to action and advertisers to realize value in connecting with users with high commercial intent. Our partnership with Amazon will allow us to scale these efforts in meaningful ways.”
On the other hand, Amazon SVP Paul Kotas noted that their company is pleased with the collaboration with Pinterest. Kotas said the development would make it easy for customers to discover and buy relevant items via shoppable content.
In addition to announcing the strategic partnership, Pinterest released its earnings for the first quarter. The company surpassed expectations in Q1 revenue and earnings as the quarterly revenue was up 5% YoY to $603 million. The image-sharing and social media service also experienced growth in its global monthly active users (MAUs), which added 7% year over year to 463 million. Pinterest’s total costs and expenses during the last quarter were $846 million, which included $121 million of restructuring charges. The company spent $72 million to repurchase 2.8 million shares of Class A common stock.
At press time, PINS is down 13.16% to $23.68 in premarket trading.