Pinterest Inc’s first-quarter revenue and profit surpassed market estimates on Wednesday as the image-sharing platform benefited from higher ad spending by businesses, sending its shares 9% higher in extended trading.
Like its peers, Pinterest posted strong user growth in the early months of the pandemic as home-bound consumers sought projects to keep themselves entertained. But that boom has faded with the easing of lockdowns, prompting the company to double down on efforts to grow its ad business.
Revenue rose 18% in the first three months of the year to $575 million, driven by strength in the retail advertising and international businesses. Analysts on average were expecting a figure of $572.5 million, according to Refinitiv IBES data.
"We benefited significantly from strength in retail. And I would imagine that based on what we’re seeing that, that will continue," Chief Financial Officer Todd Morgenfeld said on a post-earnings call.