Abraham Yousef · August 2024
MMM: Pinterest Q2 2024 Advertising Trends and Earnings Results
Pinterest’s 2Q24 top and bottom line growth exceeded street estimates, yet shares tumbled 15% on weak 3Q24 guidance. Per Sensor Tower data, Pinterest mobile app ads/session, MAUs and top advertiser vertical spending trends all moved directionally in line with the company’s reported estimates.
Key Takeaways:
Pinterest’s 2Q24 top line growth exceeded street estimates as a result of increased advertiser demand. Reported global and US CAN revenue in 2Q24 increased 21% and 19% YoY, respectively, representing a slight deceleration in YoY growth of ~200-300bps each vs 1Q24 growth. This was largely in line with ST’s US ads/session for Pinterest as the metric also saw a 200bps deceleration in YoY growth in 2Q24 vs the prior quarter
Per ST data, Pinterest mobile app MAUs increased 5% YoY in 2Q24, flat vs 1Q24 growth (5%), and directionally in line with Pinterest’s reported MAU growth of 12%, flat vs 1Q24
Unchanged YoY growth rates for Pinterest MAUs may signal that user growth is largely flattening out for the platform, placing increased importance on user engagement and effective monetization via ads
On its 2Q24 earnings call, Pinterest called out strength in its most popular advertiser vertical, Shopping, along with noted growth in Autos and Financial Services, inline with ST data, as advertisers in the Shopping (+45%), Financial Services (+64%) and Auto (+66%) verticals all increased US ad spend on Pinterest on a YoY basis in 2Q24
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