Pinterest Inc. is the most recent internet company to seek out the path to profitability paved with advertisements.
Shares of the photograph-sharing network PINS, -2.38% surged 16% in after-hours trading on Thursday after it reported a sharp rise in income and improved average income per consumer within the U.S. and abroad throughout its second quarter. Income skyrocketed 62% to $261 million. The corporate did report a loss of $1.16 billion, or about $2.62 a share, largely from prices related to its IPO in April. Still, the income eclipsed FactSet’s estimate of $236 million, sending shares soaring.
“We noticed additional profit from Easter during the second quarter,” and more video-related advertisements, Pinterest CEO Ben Silbermann mentioned in a conference call with analysts after the outcomes have been released. The corporate raised full-year income guidance between $1.095 billion and $1.115 billion, from $1.055 billion to $1.080 billion in its previous quarter.
The outcomes and projection surpassed analysts’ estimates, maintaining the profitable ways for advert-supported internet stocks during the quarter. Fb Inc. FB, -0.77 %, Snap Inc. SNAP, -0.71 %, Alphabet Inc. GOOGL, -0.53%GOOG, -0.63% and Twitter Inc. TWTR, -0.54% previously reported better-than-expected outcomes.
Pinterest’s report on Thursday marked a big rebound from its first earnings release shortly after its initial public offering. However, at the least one number underscores again what might be a bedeviling quandary: About 72% of its 300 million monthly active users (MAUs) are international. However, a vast majority of its income comes from the U.S., where average revenue per user (ARPU) was $2.80 within the second quarter.