Pinterest, the image-sharing platform has beaten Wall Street’s second-quarter revenue expectations. The growth is attributed to more users switching to the platform and its content to keep themselves entertained while under coronavirus lockdowns. Hence, Pinterest joins the small list of companies that have gained from the lockdown necessitated by the spread of COVID-19.
Shares of the company rose about 29% today.
According to Refinitiv IBES data, Pinterest, which calls its users “Pinners,” said monthly active users soared 39% over the quarter to 416 million, beating estimates of 372.7 million.
As the spread of the pandemic has encouraged people to stay indoors for safety, they continue to rely on social networking and communication sites to stay engaged and interact with friends and family.
The update of its shopping app also played in Pinterest’s favor as in the first half of the year the number of users who viewed shopping-only feeds increased by more than 50%.
The firm, which had withdrawn its full-year forecast in April, now expects revenue from the current quarter to rise at least in the mid-30% range compared to last year. It expects revenue growth of about 50% in July year-over-year.
Net loss for the quarter ended June 30, was $100.7 million, compared with last year’s loss of $1.16 billion. The company cut its total expenditure in the quarter by around 74%.
Revenue from overseas markets rose by 72%, while revenue from the United States, the largest market, dropped by 2%.
Gross revenue increased 4% to $272 million, exceeding the average forecast of $251.2 million by analysts.
The image sharing and social media site, based out of America, is designed to save and discover information through images and, on a smaller scale, GIFs and videos in the form of pinboards.
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