Pinterest reports Q2 results after the market closes on Thursday
Pinterest (PINS) is scheduled to report results of its second fiscal quarter after the market close on Thursday, July 29, with a conference call scheduled for 4:30 pm EDT. What to watch for:
1. GUIDANCE: In April, Pinterest forecast Q2 revenue up 105% year-over-year, against analysts' consensus at that time of $530.31M. The consensus has since moved up to $561.88M. At the time, the company said "We continue to navigate uncertainty given the ongoing COVID-19 pandemic and other factors," the company said. "Our current expectation is that Q2 revenue will grow around 105% year over year. In Q2, we expect global MAUs to grow in the mid-teens and US MAUs to be around flat on a year-over-year percentage basis. Finally, we expect sequential operating expense growth to accelerate in Q2 as we continue to ramp investments in our long-term initiatives and growth drivers."
2. SNAP, TWITTER RESULTS BODE WELL FOR PINTEREST ADS: Morgan Stanley analyst Brian Nowak said the recent Q2 results from Snap (SNAP) and Twitter (TWTR) and the companies' Q3 guidance showcase the strength of the online ad markets and highlight the "impact of multi-quarter innovation." The trends and results from Snap and Twitter are positive reads for Pinterest ads, Nowak said.
Arete analyst Rocco Strauss said in May that he views Pinterest as "among the best pure plays in social commerce."
3. WEIGHT LOSS AD BAN: Pinterest is banning all ads with weight loss language and imagery, including ads that idealize or denigrate certain body types, it said on July 1. Pinterest will also not allow ads with testimonials about weight loss or weight loss products, or ads referencing Body Mass Index or similar indexes. "This stance makes Pinterest the only major platform to prohibit all weight loss ads. It's an expansion of our ad policies that have long prohibited body shaming and dangerous weight loss products or claims," the company said in a blog post.
4. ELLIOTT BOOSTS STAKE: Paul Singer's Elliott Management disclosed in an SEC filing in May that it increased its stake in Pinterest.
Keywords: earnings, quarterly earnings, earnings report, Q2, guidance, outlook