Pinterest Inc (NYSE:PINS) shares tumbled more than 11% after hours on Thursday, erasing around $3 billion from its market value, after the company missed second-quarter profit forecasts despite strong revenue and user growth.
Adjusted earnings came in at 33 cents per share, below analysts’ expectations of 35 cents.
Revenue climbed 17% to $998.2 million, ahead of forecasts, helped by growth among younger users and the adoption of its AI-powered advertising tool, Performance+.
The platform’s global monthly active users jumped 11% to 578 million, beating estimates, though growth slowed from the previous quarter.
Pinterest maintained its outlook for the third quarter, projecting revenue between $1.03 billion and $1.05 billion, in line with market expectations.
Chief financial officer Julia Donnelly noted weaker US ad spending by Asian e-commerce retailers after changes to import rules, while overall ad pricing fell 25% as more ads were served in lower-priced international markets.