SNAP

Pinterest Inc. is seeing a boom in new users as shut-in DIYers looked for new home improvement projects during the pandemic, and its revenue benefitted from...

Revenue jumped 58% in the third quarter, to $443 million, and the company said it expects fourth-quarter revenue to be 60% higher than the comparable period in 2019.

Pinterest (NYSE: PINS) reported adjusted quarterly earnings of 13 cents per share on Wednesday, which beat the analyst consensus estimate of 2 cents by 550%. This is an increase over earnings of 1 cent per share from the same period last year.

(Bloomberg) -- Pinterest Inc. reported quarterly sales that topped analysts’ estimates after advertiser demand bounced back from budget cuts seen during the initial outbreak of Covid-19. The shares surged.Third-quarter revenue jumped 58% to $443 million, the digital search and scrapbooking company said Wednesday in a statement. Analysts, on average, projected $387.8 million, according to data compiled by Bloomberg. The company also predicted that sales would increase about 60% in the holiday quarter, which would be higher than analysts’ projections of 38% growth.Pinterest said it had 442 million monthly users at the end of the period, a gain of 37% from a year earlier and higher than the average estimate of about 431 million. The shares jumped as much as 17% in extended trading to $56.95.The San Francisco-based company said in July that revenue growth increased about 50% in the month, though it expected the numbers to decline throughout the quarter. But advertiser demand stayed high during the three-month period ending in September as advertisers adapted to the new reality brought on by the coronavirus. Pinterest specifically cited an uptick in small business advertisers, retailers and large advertisers of consumer packaged goods.Chief Executive Officer Ben Silbermann attributed some of Pinterest’s user growth to the changing environment as more people move communication and activities online. “More than ever before, people are coming to Pinterest to get inspiration for their lives,” Silbermann said in the statement.Pinterest also said it received a boost of almost 4 million monthly active users when young people upgraded their iPhones to Apple Inc.’s new operating system, iOS 14, and used Pinterest to come up with ideas for new background filters.Pinterest’s third-quarter revenue growth is another sign the digital ad industry has returned to pre-Covid levels -- an idea that was reinforced last week when Snap Inc. also reported better-than-expected sales. Facebook Inc., Alphabet Inc. and Twitter Inc. report earnings on Thursday.(Updates with shares in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Pinterest's stock price soared more than 10% after hours on Wednesday as the company posted strong revenue and user growth in its third-quarter earnings.

The social media company’s revenue hasn’t been as resilient as that of several of its rivals, but its daily user count has soared.

Strong metrics from companies such as Snap (SNAP) suggest that the social media segment could be poised for growth.

A recovery for the advertising market could mean bright things for the big tech companies' ads businesses when they report earnings later this week.