Image sharing company Pinterest Inc beat Wall Street estimates for second-quarter revenue on Friday, as more users turned to its platform for content to keep them entertained while under coronavirus lockdowns.
The company’s shares surged about 29% before the bell, after gaining about 35% this year through Thursday’s close.
Pinterest, which calls its users “Pinners”, said monthly active users jumped 39% to 416 million during the quarter, beating estimates of 372.7 million, according to Refinitiv IBES data.
Stay-at-home orders to limit the spread of the COVID-19 pandemic have prompted people to use social networking and communication platforms to stay entertained and connected with friends and family.
Pinterest also benefited from its updated shopping feature, with the percentage of users who visited shopping-only feeds growing more than 50% in the first half of the year.
The company, which had withdrawn its full-year outlook in April, now expects current-quarter revenue to grow in the mid-30% range from a year earlier. It forecast year-over-year revenue growth for July of about 50% through July 29.
Net loss for the quarter ended June 30 was $100.7 million, compared with a loss of $1.16 billion last year. The company slashed its total expenses by about 74% in the quarter.
Excluding items, Pinterest reported a loss of 7 cents per share, while analysts were expecting a loss of 14 cents.
It recorded a 72% rise in sales from international markets, while sales from the United States, it’s largest market, fell 2%.
Total revenue rose 4% to $272 million, beating analysts’ average estimate of $251.2 million.
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