Pinterest is set to report results Monday after the market closes, with pins stock headed into the update after a month in which the shares rose 11.2%. Investors will be looking for signs that the company can keep growth moving after a quarter that brought $1.32 billion in revenue, up 14.3% from a year earlier, and 619 million monthly active users, an 11.9% increase.
The numbers matter because analysts expect revenue to rise 12.8% year on year this quarter, a slower pace than the 15.5% increase Pinterest posted in the same period last year. The company also enters the report after missing analysts’ revenue expectations last quarter, when its revenue and EBITDA guidance for the next quarter came in well below forecasts. That history has made Pinterest one of the more closely watched consumer internet names heading into earnings season.
Analysts have not rushed to change their views: most covering the company have reconfirmed estimates over the past 30 days. Even so, Pinterest has missed Wall Street’s revenue estimates multiple times over the last two years, leaving little room for another slip. Its average analyst price target stands at $23.16, above the current share price of $20.29.
The comparison set is mixed. Reddit posted 69.1% year-on-year revenue growth in its latest quarter and beat estimates by 8.8%, while Meta reported revenue up 33.1% and topped forecasts by 1.4%. Reddit jumped 12.5% after its results, while Meta fell 9.2%, a reminder that the market is rewarding some growth stories and punishing others with little patience in between.
Consumer internet shares have been up 11.1% on average over the last month, with Pinterest slightly ahead of that move. Monday’s report will show whether that rally reflects confidence in the business or simply gives pins stock one more chance to catch up with what Wall Street already expects.