Pinterest beat Wall Street’s expectations with its quarterly revenue rising to $708 million, higher than analysts’ estimates of $696 million.
Overall, the company’s Q2 2023 revenue rose 6% year over year (YoY), while net losses declined by 19% to $35 million, down from $43.1 million a year ago.
Pinterest CEO Bill Ready attributed the company’s recent success to Gen Z users, who are driving significant growth in terms of overall users and engagement.
“Most noteworthy, it was our best user growth quarter in more than two years,” Ready said. “Gen Z is our fastest-growing cohort, and they’re engaging more deeply than prior cohorts.”
Under Ready’s helm, the company has also seemingly benefitted from introducing more shoppable content on its platform, further boosting engagement.
“More than half of the users on Pinterest say they’re there to shop, but the actionability on Pinterest was low,” Ready said. “As we’re bringing that shoppable content onto Pinterest, we’re finding that it’s really driving great engagement.”
Looking ahead, the company expects its Q3 sales to grow in the high single-digits range year over year, while its non-GAAP operating expenses will likely increase 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,” Ready said. “Over the past year, we’ve been laser-focused on our key differentiators, and we’re seeing results.”