Pinterest Shares Rally as Growth Reaccelerates

Pinterest’s year-over-year revenue growth is expected to accelerate following a slowdown in 2022 and 2023. The company’s finance chief, Julia Donnelly, said she now expects third-quarter revenue growth to fall at the high end of a range in the high single digits, after telling analysts in August that she was expecting Pinterest to come in at the middle of the range. Here are some details about Pinterest’s growth:

  • Pinterest’s year-over-year revenue growth is expected to accelerate following a slowdown in 2022 and 2023.
  • Julia Donnelly, the company’s finance chief, said she now expects third-quarter revenue growth to fall at the high end of a range in the high single digits.
  • $1 billion has been set aside for new share repurchases.
  • Pinterest’s stock is up 8% this year, trailing the Nasdaq’s nearly 31% gain.
  • During its first investor day, Pinterest called for a compound annual growth rate in the mid to high teens.
  • A new partnership with Amazon appears to be helping the ad business.
  • Pinterest saw its business gain momentum in 2020 and 2021 with the onset of the Covid-19 pandemic.
  • Pinterest has reduced headcount and management has taken steps to make operations more efficient.
  • Ben Silbermann, Pinterest’s co-founder, stepped down as CEO last year, and was replaced by Google commerce executive Bill Ready.

The news of Pinterest’s growth reacceleration is a positive development for the company and its investors. The company’s stock rose as much as 5% and closed up 3% on Tuesday after the announcement. The $1 billion set aside for new share repurchases is also a positive sign for investors.

Pinterest’s growth prospects remain strong, with the company calling for a compound annual growth rate in the mid to high teens during its first investor day. The company’s new partnership with Amazon is also expected to help its ad business. While the pandemic had an outsize effect on digital ad companies, Pinterest has taken steps to make operations more efficient and reduce headcount.

Pinterest’s growth reacceleration is a positive development for the company and its investors. With a compound annual growth rate in the mid to high teens and a new partnership with Amazon, Pinterest’s growth prospects remain strong. The company’s management has taken steps to make operations more efficient, and the $1 billion set aside for new share repurchases is a positive sign for investors.