Pinterest (PINS) earnings report Q2 2023

Pinterest shares sank about 4% after the company’s second-quarter earnings report revealed expenses grew faster than revenue.

Here’s how the company did.

• Revenue: $708 million vs. $696 million expected, according to Refinitiv.
• Earnings: 21 cents per share, adjusted, vs. 12 cents expected, according to Refinitiv.

Sales in the company’s second quarter jumped 6% year over year, while net losses narrowed by 19% to $35 million, or 5 cents per share, from $43.1 million, or 7 cents per share, a year earlier.

Pinterest said its total costs and expenses were $781 million during the second quarter, an 11% increase from the $700 million it recorded the previous year during the same period.

The company said that it expects its third-quarter sales “to grow in the high single digits range year over year” while its third quarter non-GAAP operating expenses would “grow in the low single digits range year over year.”

“In Q2, we continued to build momentum with consumers and advertisers while further accelerating our pace of innovation,” Pinterest CEO Bill Ready said in a statement. “Over the past year, we’ve been laser-focused on our key differentiators and we’re seeing results.”

“Furthermore, due to our focus on cost efficiencies we returned to adjusted EBITDA margin expansion in Q2,” he added.

Pinterest said its global monthly active users jumped 8% year over year to 465 million during the period.

Last week, Meta reported second-quarter financial results in which the social networking giant’s revenue grew by double digits for the first time since the end of 2021.

Meta also posted a better-than-expected forecast for its current quarter, signaling that the week digital advertising market is experiencing a small rebound. The social networking company’s stock just capped its ninth straight monthly gain earlier this week as investors appear optimistic over its future.

But while Facebook parent Meta is experiencing some recent success from an increase of advertiser spending, the much smaller Snap continues to hurt.

Snap shares plummeted over 17% last week when the social messaging company provided poor guidance for its current quarter and reported its second straight period of declining year-over-year sales. 

Watch: Pinterest is a project-driven app that closes the loop on sales