- Pinterest beat third-quarter revenue estimates on Monday, as a stabilizing digital advertising market helped draw marketers to the image-sharing platform ahead of the holiday season.
The results fan optimism about a market rebound after major industry players Alphabet, Meta Platforms and Snap all surpassed quarterly revenue expectations last week on the back of a pick up in their advertising business. They also suggest that a push to drive up shopping on the Pinterest app through partnerships with the likes of Amazon.com was paying off for the company that lets users create online pinboards.
Brokerages including Bernstein have been optimistic about the benefits from the partnership, saying it could drive up Pinterest's fourth-quarter revenue. The San-Francisco, California-based company's revenue rose 11% to $763.2 million for the quarter ended Sept. 30, compared with Wall Street estimates of $743.5 million, according to LSEG data.
Last month, media research and investment firm Magna raised its forecast for U.S. ad spending growth to 5.2% from 4.2%, for calendar 2023. It expects digital ad sales to rise 9.6% in the period.