Pinterest shares soar on third-quarter revenue beat as it bucks online ads trend

Pinterest shares soared implicit 12% successful extended trading aft the institution reported third-quarter earnings.

Here's however the institution did.

• Earnings: 11 cents per stock (adjusted) vs. 6 cents per stock (adjusted) expected, according to Refinitiv.
• Revenue: $684.6 cardinal vs. $666.7 cardinal expected, according to Refinitiv.

Pinterest said its gross grew 8% year-over-year connected a nonaccomplishment of $65 million.

The company's monthly mean users remained comparatively level astatine 445 million.

"Our existent anticipation is that Q4 2022 gross volition turn mid-single digits connected a year-over-year percent basis, which takes into relationship somewhat greater overseas speech headwinds than successful Q3 2022," Pinterest said successful a statement. "We expect our Q4 2022 non-GAAP operating expenses to turn debased treble digits percent quarter-over-quarter.

The institution added that operating expenses should turn astir 35% year-over-year for 2022.

Pinterest's latest net study bucked the inclination of online advertizing companies posting results that missed analysts' expectations. Concerns astir a imaginable recession person caused businesses to trim spending connected online advertising, affecting a fig of companies including tech giants similar Meta and Alphabet.

Although Pinterest's gross maturation complaint of 8% during the 3rd 4th was considerably little than the 43% maturation complaint it reported the anterior twelvemonth successful the aforesaid quarter, investors were looking for immoderate affirmative signs aft aggregate rivals missed connected their respective net reports.

Shares successful Snap, for instance, plummeted past week implicit 30% the time aft the institution reported a gross miss of $1.13 billion.

Earlier this week, Alphabet followed suit erstwhile it reported third-quarter gross maturation that declined from 41% a twelvemonth agone to 6%, and said that advertizing income successful its YouTube part fell 2% twelvemonth implicit twelvemonth to $7.07 billion, missing analysts' estimates.

The adjacent day, Meta announced its second-straight quarterly gross diminution and gave anemic fourth-quarter guidance, prepping investors for different income decline. Shares successful the Facebook genitor sank 24% the time aft it reported its quarterly results.

Watch: Weakening advertisement gross could compromise Meta's escaped currency flow.