Pinterest IncForecasts slower Q3 revenue growth due to rising ad competition, causing shares to fall.
Pinterest forecast slower revenue growth for the third quarter, signaling tough competition for digital advertising from bigger players including Meta's Instagram, and its shares fell 6% in extended trading. The image-sharing platform expects current-quarter revenue between $1.19 billion and $1.21 billion, representing 13% to 15% growth, compared with analysts' average estimate of $1.20 billion. That is slower than the 18% revenue growth in its second quarter, when it reported $1.18 billion in revenue, beating estimates of $1.15 billion. Global monthly active users rose 11% to 640 million, while average revenue per user rose 7% to $1.86. CEO Bill Ready said AI is at the heart of the company's momentum and is a clear accelerant for its business.
Pinterest IncForecasts slower Q3 revenue growth due to rising ad competition, causing shares to fall.
Meta Platforms Inc.Pinterest's slower growth signals competitive strength for Meta's Instagram in digital ads.
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