Pinterest's stock price drops on disappointing earnings report.

• Pinterest surpassed expectations in both revenue and earnings per share during the second quarter, as reported on Tuesday.
• Pinterest's third-quarter revenue guidance is projected to be about $907 million, which is slightly above analysts' expectations of $900 million. The company's third-quarter sales total is projected to range from $885 million to $900 million, which equates to about 16-18% year-over-year growth.
• Pinterest reported 522 million global monthly active users (MAU) in the second quarter, surpassing analyst predictions of 520.1 million.

The company's shares sank about 15% after its second-quarter earnings were reported on Tuesday and its third-quarter guidance fell below analyst estimates.

Here's how the company performed, according to LSEG:

• Revenue: $854 million vs. $848 million expected
• Earnings per share: 29 cents adjusted vs. 28 cents expected

In the second quarter of 2023, Pinterest recorded a net loss of $35 million, while its total costs and expenses were $781 million.

Pinterest anticipates its third-quarter sales to be between $885 million and $900 million, representing approximately 16-18% growth compared to the previous year.

Pinterest's third-quarter revenue guidance was predicted by analysts to be approximately $907 million.

"Pinterest CEO Bill Ready stated that their monetization efforts are yielding positive results. Advertisers are experiencing enhanced performance across critical objectives on Pinterest, such as brand recognition and conversion, as the company continues to introduce AI-driven products and experiences. As a result, Pinterest is capturing a larger portion of advertising budgets from some of the world's largest brands."

Pinterest reported 522 million global monthly active users (MAU) in the second quarter, surpassing analyst predictions of 520.1 million. The company's regional breakdown of global MAU showed that the U.S./Canada had 98 million, Europe had 136 million, and the rest of the world had 288 million. Analysts had predicted 98.4 million for U.S./Canada, 136.8 million for Europe, and 284.6 million for the rest of the world.

Pinterest's global average revenue per user (ARPU) was $1.64 in the second quarter, in line with analyst estimates. The company's regional breakdown of global ARPU was $6.85 for the U.S./Canada, $1.03 for Europe, and 13 cents for the rest of the world, which was slightly below analyst expectations.

Last week, the company reported second-quarter revenue of $84.74 billion, which exceeded analyst estimates. However, its YouTube advertising sales were $8.66 billion during that period, falling short of analyst expectations of $8.93 billion.

This week, both companies will reveal their second-quarter earnings: Wednesday for the first company and Thursday for the second.

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