Social commerce platform Pinterest (NYSE: PINS) will be reporting results this Thursday after market close. Here’s what to look for.
Pinterest beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $855 million, up 15.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations. It reported 570 million monthly active users, up 10% year on year.
Is Pinterest a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Pinterest’s revenue to grow 14.4% year on year to $976.4 million, slowing from the 20.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pinterest has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average.
Looking at Pinterest’s peers in the social networking segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 77.7%, beating analysts’ expectations by 17.2%, and Meta reported revenues up 21.6%, topping estimates by 6%. Reddit traded up 16.9% following the results while Meta was also up 11.2%.
Read our full analysis of Reddit’s results here and Meta’s results here.
Investors in the social networking segment have had steady hands going into earnings, with share prices flat over the last month. Pinterest is up 9.3% during the same time and is heading into earnings with an average analyst price target of $42.03 (compared to the current share price of $38.98).
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