Key facts
- Pinterest projects third-quarter revenue between $1.19 billion and $1.21 billion.
- This forecast represents a 13% to 15% growth rate, slower than the 18% growth in Q2.
- The company cited intense competition for digital advertising from larger players.
- Global monthly active users increased by 11% to 640 million in the second quarter.
- Average revenue per user grew by 7% to $1.86 in the second quarter.
Pinterest has forecast a deceleration in revenue growth for the third quarter, signaling increased competition in the digital advertising market. The image-sharing platform anticipates revenue to be between $1.19 billion and $1.21 billion, representing a growth of 13% to 15%. This is a slowdown compared to the 18% revenue growth recorded in the second quarter, when Pinterest reported $1.18 billion in revenue, surpassing analyst expectations.
The company is facing heightened competition from larger rivals such as Meta, whose Instagram platform offers advanced ad automation tools, and Google, which has enhanced Google Images with AI-powered personalization. OpenAI is also reportedly increasing its focus on advertising, and competitor Reddit has launched a similar product to Pinterest's AI-powered Performance+ suite.
Pinterest's AI-driven Performance+ suite aims to help advertisers optimize campaigns with less manual effort. CEO Bill Ready stated that AI is a key driver of the company's momentum. In the second quarter, Pinterest's global monthly active users grew by 11% year-over-year to 640 million, and average revenue per user increased by 7% to $1.86. Earlier this year, Pinterest acquired tvScientific to expand advertisers' reach into connected TV.