By
Steve Muchoki
September 20th, 2023
Pinterest’s financial reports for Q3 2022 have defied the odds of several advertising companies whose revenue reportedly fell short of analysts’ expectations.
Image sharing and social service firm Pinterest Inc (NYSE: PINS) has surprised Wall Street analysts in its Q3 2022 report. Wall Street projected the company would have a sales revenue of 666.7% in Q3 2022 and an earning per share (EPS) of 6 cents. However, the figures from the reports exceeded the analysts’ expectations. In the financial reports, Pinterest announced sales of $684.6 million, losses of $65.2 million, and an average of 445 million monthly users. After the announcement, the earnings per share (EPS) of Pinterest rose from 10 cents to 11 cents. Comparing Pinterest’s announced sales to Q3 2021, the social media platform gained 8% more in Q3 2022. Pinterest generated a total of $632.9 million in the third quarter of 2021.
Bill Ready, the Chief Executive Officer of Pinterest, said:
“Despite the challenging macro environment, we are delivering performance and a distinct value proposition to advertisers, reaching users across the full funnel.”
Recently, the Pinterest executive team had a conference call with financial analysts. During the call, the group boasted of stability among customers, especially in large retail and consumer packaged goods (CPG) marketing. Speaking about their future expectations, the team said:
“Our current expectation is that Q4 2022 revenue will grow mid-single digits on a year-over-year percentage basis, which takes into account slightly greater foreign exchange headwinds than in Q3 2022. We expect our Q4 2022 non-GAAP operating expenses to grow low double digits percent quarter-over-quarter”.
Pinterest noted that operating expenses would grow by 35% year-on-year in 2022.
Pinterest Q3 2022 Reports: A Positive One Among Rivals
Pinterest’s financial reports for Q3 2022 have defied the odds of several advertising companies whose revenue reportedly fell short of analysts’ expectations. Major tech companies like Meta and Alphabet are being affected by the reduced number of online adverts. Speculations that a wave of recession hitting major businesses is responsible for this.
Even though Pinterest is flourishing more than many other advertisement firms, the 8% growth rate of Pinterest in Q3 2022 is minute compared to Q3 2021. In the previous year, Pinterest had a growth rate of 43% in the third quarter. Nevertheless, investors are glued to Pinterest after many rival platforms fell short of their expectations. For instance, Snapchat shares slumped by 30% after the company announced a revenue loss of $1.13 billion. Before this, Alphabet announced a growth decline of 6% compared to 2021’s 41% in its third-quarter reports. Alphabet claims its advertising sales on Youtube fell by 2% to $7.07 billion.
Following these reports, Meta announced its second consecutive quarterly decline. The company expects to record more losses in the last quarter of 2022, which would spread over into 2023. Unfortunately for Meta, its share fell by 24% a few hours after the release of the quarterly reports for Q3 2022.