Social media companies have seen strong advertising growth this earnings season, which is a good sign for Pinterest as it prepares to release its own results.
Pinterest will report its second-quarter results after the market closes on Tuesday. Analysts surveyed by FactSet expect adjusted earnings of 36 cents per share and revenue of $1.15 billion. That’s up from 33 cents per share and $998 million in revenue a year ago. Monthly active users are expected to reach 635.3 million, compared to 578 million last year.
Most of Pinterest’s revenue comes from advertising, so recent results from similar companies matter. Reddit, Meta Platforms, and Snap all reported better-than-expected ad growth in their latest quarters. Last week, Reddit reported $762 million in ad revenue, a 64% increase from last year. Meta’s second-quarter ad revenue was $59.4 billion, up 27%. Snap’s ad sales reached $1.28 billion on Monday, up 9% from a year ago.
This overall growth in digital advertising is a good sign for Pinterest’s upcoming report. Like other companies, Pinterest is trying to improve its ad business and grow its user base by investing in AI. In June, the company said it would expand its cloud partnership with Amazon Web Services, planning to spend $4 billion on cloud services through 2031.
Pinterest shares went up 4.7% on Tuesday before the results, but the stock is still down about 2% for the year.
