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Pinterest PINS.N forecast second-quarter revenue above Wall Street estimates on Tuesday, expecting a boost from growing ad spending on the image-sharing platform.
The company benefited as marketers turned to the digital platform to reach Gen Z users – more than 40% of its user base – and take advantage of its new advertising-driven advertising tools. AI and its latest ad formats, which provide better user engagement.
Last month, the media research unit MAGNA Global of advertising group Interpublic Group IPG.N said it expected the U.S. advertising market to grow more than 9 percent this year to $369 billion. dollars.
The company expects second-quarter revenue to be between $835 million and $850 million, compared to analysts’ average forecast of $826.5 million, according to LSEG data.
In the first quarter, the overall number of monthly active users (MAUs) increased 12% to 518 million, compared to estimates of 503.2 million users.
Revenue for the first quarter ended March 31 increased 23% from a year earlier to $740 million, beating estimates of $699.9 million.
The majority of Pinterest’s U.S. ad spend in Q1 came from the shopping category (50%), followed by 20% from consumer packaged goods (CPG), while 6.4% came from the health and wellness category. -be, market research firm Sensor Tower told Reuters on Monday.
The top five U.S. advertisers on Pinterest were Amazon.com AMZN.O, Target TGT.N, PDD Holdings-owned PDD.O Temu, Walmart WMT.N and French cosmetics giant L’Oréal OREP.PA, accounting for 29% of total ad spend during the quarter, Sensor Tower added.