Pinterest delivers revenue beat on digital ad market rebound

(Reuters) -Image-sharing platform Pinterest (NYSE:) beat second-quarter revenue estimates on Tuesday as monthly active users surged and digital advertising rebounded from a downturn triggered by an uncertain economy.

Tech giants Meta Platforms and Alphabet (NASDAQ:)’s quarterly results had also signaled a nascent recovery in ad spending by businesses, driven by signs of cooling inflation and improving consumer confidence.

Pinterest’s revenue for the quarter ended June 30 grew 6% to $708 million, compared with market estimates of $696.1 million, according to Refinitiv data.

Global monthly active users (MAUs) on the platform rose 8% to 465 million from a year ago, above estimates of 462.8 million.

Pinterest also said it expects current-quarter revenue to grow in the high-single-digit range from a year ago, while analysts estimate growth of 7.7%.

CEO Bill Ready’s efforts to drive up shopping on the platform and increase monetization to boost user and advertising revenue are starting to bear fruit, analysts have said.

Pinterest also reduced its real estate footprint and laid off about 150 employees in February in an effort to cut costs. In April, it announced an ad partnership with e-commerce giant Amazon.com (NASDAQ:).

The company earned a quarterly adjusted profit of 21 cents per share, compared with estimates of 12 cents.

Its shares fell 4% in trading after the bell.