Pinterest reports earnings miss, stock rises on better-than-expected user numbers and Elliott stake

Pinterest reported adjusted earnings per share of $0.11 (versus $0.18 expected) and revenue of $666m (versus $667m expected), with global active users declining 5% year-over-year to 433 million (431 million expected).

Elliott Investment Management also announced that it has become Pinterest’s largest investor, which in tandem with better-than-expected user numbers sent Pinterest’s stock up over 19% in pre-market trading.

CFO and head of business operations Todd Morgenfeld added in Pinterest’s earnings call that the company saw 25% growth in advertising spend commitments from joint business partnerships in H1 2022 compared to H1 2021.

However, Morgenfeld said that “the digital advertising environment has been and will continue to be challenging”, as many of Pinterest’s advertising partners are experiencing supply chain issues, inflation, and weakening consumer demand.