Pinterest Inc. reported second-quarter revenue that exceeded analysts’ estimates. It signaled that the company’s efforts in expanding its business to support ecommerce have paid off.
The company runs a social media site for being inspired by images.
Pinterest said sales rose 6% to $708 million in the period ended June 30. That exceeded the $699 million that analysts projected, according to the average of estimates Bloomberg compiled. Revenue in the current quarter will grow in the high single digits year over year, the company said in an Aug. 1 statement.
One year into the position, chief executive officer Bill Ready wants to expand Pinterest’s business model beyond advertising and into shopping, increasing the amount of time users spend on the platform. In May, Pinterest announced an advertising partnership with Amazon.com Inc., aiming to make shopping easier on the site.
Amazon is No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by 2023 third-party GMV. The latest analysis of the industry as whole is published within the 2023 Global Online Marketplaces Report.
Pinterest’s push for shoppable content follows similar efforts from other social media platforms, including Meta Platforms Inc.’s Instagram and ByteDance Ltd.’s TikTok.
“Shopping is working on Pinterest and we’ve had some great partnerships that are aiding with that,” Ready said in an Aug. 1 interview. “There’ll be more of those to go.”
The pinboard-style digital-search company said monthly users increased 8%, to 465 million, from a year earlier.
Whether people would shop on Pinterest “was a big question a year ago,” Ready said. “We have answered that question definitively.”
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