Pinterest's revenue forecast gets boost from AI ad tools, growing marketing spend
Pinterest forecast current-quarter revenue above Wall Street estimates on Thursday, signaling its artificial intelligence tools are boosting advertising spend on the platform and sending its shares up 16 per cent in extended trading.
Despite uncertainty over marketing budgets, the company's emphasis on direct response ads — designed to prompt specific actions like shopping, app downloads or website visits — continues to drive ad spend.
Pinterest's results came after the termination of a duty-free import loophole in the U.S., which, combined with deepening trade tensions, has constrained ad budgets for some social media platforms.
Finance chief Julia Donnelly said on the post-earnings call that Pinterest is "not immune to the macro environment," but added that the company is confident in its "multiple revenue initiatives."
"We have observed a reduction in spend from Asia-based e-commerce retailers in the U.S., given the change in the de minimis exemption; however, we have also seen a geographic diversification from some of those Asia-based retailers to our European and rest-of-world user regions," Donnelly added.
Rivals Facebook-parent Meta and Reddit topped revenue expectations in the first quarter. In contrast, Snap said that it would not issue a quarterly forecast due to economic uncertainty.
Pinterest is becoming increasingly attractive to advertisers due to its largest and fastest growing user cohort, Gen Z, along with its "Performance+" automation and AI tools for creating personalized ad campaigns.
CEO Bill Ready also announced a third-party ad deal with Magnite to help the company "aggregate smaller sources" of advertising demand. The company already has such deals with Google and Amazon.com.
Pinterest's global monthly active users rose 10 per cent to 570 million in the first quarter, exceeding analysts' average estimate of 564 million, according to data compiled by LSEG.
The quarterly results show the company "can sustain momentum without the holiday tailwind," eMarketer senior director Jeremy Goldman said.
Pinterest forecast second-quarter revenue of $960 million to $980 million, above estimates of $966.3 million.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
an hour ago
- CNA
Trump reports hundreds of millions of dollars from crypto, golf, licensing fees
U.S. President Donald Trump reported hundreds of millions of dollars in income from crypto, golf clubs and licensing ventures in a public financial disclosure report released on Friday that provided a glimpse of the vast business holdings of America's billionaire president. The annual financial disclosure form, which appeared to cover the 2024 calendar year, shows the president's push into crypto added substantially to his wealth but he also reported large fees from developments and revenues from his other businesses. While Trump has said he has put his businesses into a trust managed by his children, the disclosures show how income from them still ultimately accrue to the president - something that has opened him to conflicts of interest. Some of his businesses in areas such as crypto, for example, benefit from U.S. policy shifts under him and have become a source of criticism. The White House did not immediately respond to a request for comment. The financial disclosure was signed on June 13 and did not state the time period it covered. The details of the cryptocurrency listings, as well as other information in the disclosure, suggest it was through the end of December 2024, which would exclude most of the money raised by the family's cryptocurrency ventures. Given the speed at which the Trump family has made deals during his ascent to the presidency, the filing is already a time capsule of sorts, capturing a period when they were just starting to get into crypto but were largely still in the world of real estate deals and golf clubs. A meme coin released earlier this year by the president - $TRUMP - alone has earned an estimated $320 million in fees, though it's not publicly known how that amount has been divided between a Trump-controlled entity and its partners. In addition to the meme coin fees, the Trump family has raked in more than $400 million from World Liberty Financial, a decentralized finance company. The Trump family is involved, also, with a bitcoin mining operation and digital asset exchange-traded funds. In the disclosures, Trump reported $57.35 million from token sales at World Liberty. He also reported holding 15.75 billion governance tokens in the venture. The wealth of the Republican businessman-turned-politician ranges from crypto to real estate, and a large part on paper is tied up in his stake in Trump Media & Technology Group, owner of social media platform Truth Social. The disclosure showed income from various assets including Trump's properties in Florida. Trump's three golf-focused resorts in the state - Jupiter, Doral and West Palm Beach - plus his nearby private members' club at Mar-a-Lago generated at least $217.7 million in income, according to the filing. The disclosure also listed income of $5 million in license fees from a development in Vietnam. Trump collected royalty money, also, from a variety of deals - $1.3 million from the Greenwood Bible (its website describes it as "the only Bible officially endorsed by Lee Greenwood and President Trump"); $2.8 million from Trump Watches, and $2.5 million from Trump Sneakers and Fragrances. Trump listed $1.16 million in income from his NFTs - digital trading cards in his likeness while First Lady Melania Trump earned around $216,700 from license fees her own NFT collection.
CNA
3 hours ago
- CNA
Football club investor Eagle files for US IPO, Bloomberg News reports
Eagle Football Holdings, one of the most active investors in global football clubs, has confidentially filed for a U.S. initial public offering, Bloomberg News reported on Friday. Reuters could not immediately confirm the report. The France-based company submitted a draft registration statement to the U.S. Securities and Exchange Commission, the report added, citing a company statement. The firm has been working with UBS Group AG on the potential IPO, the report said. Eagle Football, run by U.S. businessman John Textor, holds stakes in multiple football clubs including Olympique Lyonnais, Crystal Palace and Brazil's Botafogo.
CNA
3 hours ago
- CNA
Trump reports tens of millions in income from crypto ventures
President Donald Trump filed his first public financial disclosure report of his term on Friday, providing what he said was the latest information about his holdings, including income from his family's foray into crypto currencies. Trump reported $57.35 million from token sales at crypto firm World Liberty Financial. He also reported holding 15.75 billion governance tokens in the venture. The annual report was signed as of June 13, but it was not immediately clear what time period it covered.
