Pinterest Surprises Wall Street Analysts with a Strong Quarter, Citing Heightened Demand for Ad Services

Earnings analysis of Pinterest for Q3 2020

Source: Pixabay | Photographer: FirmBee

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Shares of the social media platform rose by nearly 27% this Thursday upon announcing a stronger-than-expected financial performance despite the ongoing pandemic.

The great results showcase that business demand for ad services is alive and well in the second half of 2020. According to Aaron Goldman, chief marketing officer at advertising software company Mediaocean, “brands using the company’s closed ecosystems platform increased ad spending almost 40% year-over-year in the third quarter”.

Here are the main financial highlights from Pinterest’s Q3 2020 earnings release:

 

Total revenue: $443 million (increase of 58% year-over-year). Of this amount, $374 million was generated in the U.S.

Net loss: $94 million on a GAAP basis.

Global monthly active users: the platform’s user base has grown 37% year-over-year (442 million users).

Financial forecast for Q4: Pinterest estimates that it will achieve year-over-year revenue growth of 60%. However, the company warned investors that there is still a lot of uncertainty remaining around the pandemic and other factors.

 

Another reason for Pinterest’s strong quarter is that advertisers have started avoiding other popular ad platforms, such as Facebook and Twitter, due to the rapid and unmoderated spread of toxic content and misinformation.

 

“Advertisers want to be around positivity as they build their brands, and that’s contributing to our growth as well.” 

Ben Silbermann, Pinterest CEO 

 

Finally, consumers themselves have also contributed to the stellar results: sheltered at home from the pandemic, people use Pinterest and other social platforms to seek inspiration while working or practising their hobbies.

If the social platform’s performance is to be any indicator, the upcoming reports of other tech giants, such as Alphabet, Facebook, Twitter and Amazon, and particularly their ad revenue segments, have a good chance of also bringing positive news to investors.


Upcoming reports

See the full list of upcoming earnings reports for 2 – 6 November in the tables below.

Monday, November 2nd 2020

Country of originCompany nameFiscal period
USAMondelez International IncQ3 2020
USASBA Communications CorpQ3 2020
USAWilliams Companies IncQ3 2020
SwitzerlandTransocean LtdQ3 2020
USAHenry Schein IncQ3 2020
USAWaste Management IncQ3 2020
USAFirstEnergy CorpQ3 2020
USABerkshire Hathaway IncQ3 2020
AustriaErste Group Bank AGQ3 2020

Tuesday, November 3rd 2020

Country of originCompany nameFiscal period
USAProgressive CorpQ3 2020
CanadaThomson Reuters CorpQ3 2020
USAFox CorpQ1 2021
USAGannett Co IncQ3 2020
USAMckesson Corp
Q2 2021
USASysco Corp
Q1 2021
USAExpeditors International of Washington Inc
Q3 2020
CanadaBausch Health Companies Inc
Q3 2020
IrelandJohnson Controls International PLC
Q4 2020
United KingdomMylan NV
Q3 2020
USAExelon Corp
Q3 2020
USAEmerson Electric Co
Q4 2020
United KingdomGW Pharmaceuticals PLC
Q3 2020
ItalyFerrari NV
Q3 2020
United KingdomAssociated British Foods PLC
Full year 2020
GermanyBayer AG
Q3 2020
GermanyHugo Boss AG
Q3 2020
Kingdom of the NetherlandsKoninklijke DSM NV
Q3 2020
FranceBNP Paribas SA
Q3 2020
GermanyEvonik Industries AG
Q3 2020
USAPayPal Holdings Inc
Q3 2020

Wednesday, November 4th 2020

Country of originCompany nameFiscal period
USAZynga IncQ3 2020
USAAllstate CorpQ3 2020
USALannett Company IncQ1 2021
USAExpedia Group IncQ3 2020
USAQualcomm IncQ4 2020
USAACADIA Pharmaceuticals IncQ3 2020
USAMarathon Oil CorpQ3 2020
USAApache Corp
Q3 2020
USAVerisk Analytics Inc
Q3 2020
USAGoDaddy Inc
Q3 2020
USAFitbit Inc
Q3 2020
United KingdomLiberty Global PLC
Q3 2020
USAHilton Worldwide Holdings Inc
Q3 2020
CanadaCameco Corp
Q3 2020
ChinaBaidu Inc
Q3 2020
USAWynn Resorts Ltd
Q3 2020
Kingdom of the NetherlandsKoninklijke Ahold Delhaize NV
Q3 2020
GermanyHannover Rueck SE
Q3 2020
GermanyFraport AG Frankfurt Airport Services Worldwide
Q3 2020
FranceCredit Agricole SA
Q3 2020
NorwayMowi ASA
Q3 2020

Thursday, November 5th 2020

Country of originCompany nameFiscal period
USAExelixis IncQ3 2020
USAInseego CorpQ3 2020
USAElectronic Arts IncQ2 2021
USARoku Inc
Q3 2020
USASquare Inc
Q3 2020
USATripadvisor Inc
Q3 2020
USAAmerican International Group Inc
Q3 2020
USAGoPro Inc
Q3 2020
USAEOG Resources Inc
Q3 2020
USAUber Technologies Inc
Q3 2020
USANews Corp
Q1 2021
USACloudflare Inc
Q3 2020
USABooking Holdings Inc
Q3 2020
USAYelp Inc
Q3 2020
USADropbox Inc
Q3 2020
USAMicrochip Technology Inc
Q2 2021
USACigna Corp
Q3 2020
USADominion Energy Inc
Q3 2020
USANRG Energy Inc
Q3 2020
USARegeneron Pharmaceuticals Inc
Q3 2020
USALiberty Media Corp
Q3 2020
CanadaBarrick Gold Corp
Q3 2020
USADISH Network Corp
Q3 2020
ChinaAlibaba Group Holding Ltd
Q2 2021
USADentsply Sirona Inc
Q3 2020
USACardinal Health Inc
Q1 2021
USAHanesBrands Inc
Q3 2020
USAZoetis Inc
Q3 2020
USAStericycle Inc
Q3 2020
USABristol-Myers Squibb Co
Q3 2020
IsraelTeva Pharmaceutical Industries Ltd
Q3 2020
USADuke Energy Corp
Q3 2020
USADiscovery Inc
Q3 2020
United KingdomLinde PLC
Q3 2020
USAMonster Beverage Corp
Q3 2020

Friday, November 6th 2020

Country of originCompany nameFiscal period
USACheniere Energy IncQ3 2020
CanadaEnbridge Inc
Q3 2020
USAMarriott International Inc
Q3 2020
USACVS Health Corp
Q3 2020

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