Pinterest Inc. reported second-quarter revenue that exceeded analysts’ estimates, signaling that the company’s efforts in expanding its business to support e-commerce have paid off.
The company, which runs a social media site for being inspired by images, said sales rose 6% to $708 million in the period ended June 30. That exceeded the $699 million that analysts projected, according to the average of estimates compiled by Bloomberg. Revenue in the current quarter will grow in the high single digits year over year, the company said in a statement Tuesday.
One year into the position, Chief Executive Officer Bill Ready wants to expand Pinterest’s business model beyond advertising and into shopping, increasing the amount of time users spend on the platform. In May, Pinterest announced an advertising partnership with Amazon.com Inc., aiming to make shopping easier on the site. The company’s push for shoppable content follows similar efforts from other social media platforms, including Meta Platforms Inc.’s Instagram and ByteDance Ltd.’s TikTok.
“Shopping is working on Pinterest and we’ve had some great partnerships that are aiding with that,” Ready said in an interview Tuesday. “There’ll be more of those to go.”
The pinboard-style digital-search company said monthly users increased 8%, to 465 million, from a year earlier.
Whether people would shop on Pinterest “was a big question a year ago,” Ready said. “We have answered that question definitively.”
