Users and advertisers are coming back to Pinterest, resulting in an upswing in sales for the social media company, Bloomberg reported.
With revenue jumping up in July after a slump earlier in the pandemic, Pinterest value surged 37 percent, Bloomberg wrote.
Revenue in the second quarter came up to around $272 million in the second quarter. That's up about 4 percent year-over-year, and is more than what Wall Street estimated it would be. In addition, the company said it has 416 million monthly active users, a rise of 39 percent from a year ago. In the U.S., growth was particularly strident, with more users returning to the service — though the company expects the numbers to fall going forward.
For the third quarter, Pinterest said it expects sales to grow by around the mid-30 percent range, with shares rising as much as $34.50 in New York last Friday (July 30), with spending primarily dominated by small and medium-sized revenues. More automated buying tools and strengthening sales overseas contributed to that, Bloomberg wrote.
Ben Silbermann, chief executive officer of Pinterest, said the company was seeing more people taking advantages of the practical uses of the service as of late.
“In these tough times, we’re seeing more and more people rely on Pinterest to cook at home, plan kids activities and set up a home office,” he said, according to the press release. “Businesses are helping them turn their ideas into reality as people are increasingly discovering and buying products on Pinterest.”
Pinterest introduced a new feature in June allowing users to shop with their cameras. With the new feature, users can now tap the camera in their phone's search bar and click a 'Shop' option, which will pull up product links on checkout pages of retailer sites.
The company was having trouble earlier in the pandemic, as it tried to balance its need for more revenue with a want to keep its most prosperous advertisers. Those advertisers primarily included retail and packaged-good companies.
