The pictorial social media company, Pinterest Inc. (PINS) rebounded in the after-hours on April 27, 2022. The precursor behind the rebound was the company’s earnings release for the first quarter of 2022. Beating estimates on both fronts of revenue and earnings, the stock rallied in the after-hours to add 8.14% at 2.88 million shares. Thus, PINS was then trading at a value of $20.19 per share after its decline of 2.86% before the earnings release.
PINS’ Earnings Highlights
The social media company came out with a net income of $68.99 million for the quarter which resulted in earnings of $0.10 a share. With a staggering earnings surprise of 150%, the company beat the consensus estimate of $0.04 per share for the quarter. Comparatively, the year-ago earnings were $0.11 per share.
Moreover, the company posted revenues of $574.9 million against the consensus estimate of $573 million for Q1 2022. On the other hand, the year-ago revenues were $485.23 million, which marks an increase of 18% YOY for the Q1 2022 quarter revenue.
Opposing the beat earnings and revenue was a 9% YOY decline in global monthly active users. PINS said its global MAUs were 433 million in the quarter while Wall Street expected 437.9 million.
According to CEO and co-founder Ben Silbermann, the company did well in the quarter despite the multitude of macroeconomic and geopolitical challenges.
What Do PINS expect for the Future?
With a focus on creator-led and inspirational content, shopping, Pinner experience, and advertiser success, PINS expects growth in the long term. In addition to growing headcount for its strategic initiatives, the company also plans to scale its native content ecosystem.
Hence, for the ongoing quarter, the company expects growth of 11% YOY in revenue while operating expenses are anticipated to increase 10% quarter-over-quarter. With the plans for increased investments to grow its business, the company is looking ahead to an increase of 35-40% in its full-year operating expenses.
How are Social Media Stocks Doing?
With the commencement of the earnings season, social media stocks have shown mixed performance. Investors have been worried lately as concerns for continued growth increase amid the geopolitical instability on top of a harsher Federal Reserve. The spiking competition and focus on video-making have also been a reason for concern.
Following an upbeat quarterly result on Wednesday, PINS stock rallied in the after-hours as investors celebrated the win on both revenue and earnings.