Aug 7 (Reuters) - Pinterest PINS.N missed Wall Street expectations for second-quarter profit on Thursday, overshadowing robust revenue and user growth, sending its shares down over 10% in extended trading.
The social media platform reported adjusted profit per share of 33 cents, missing analysts' average estimate of 35 cents, according to data compiled by LSEG.
However, revenue rose 17% to $998.2 million, beating expectations of $974.8 million.
The growth was driven by a surge in Gen Z users—who now represent more than half of Pinterest's user base— and the platform's AI-powered tools, which have attracted advertisers seeking personalized and automated campaigns.
Pinterest's results follow Meta META.O and Reddit's RDDT.N strong second quarter performance last week. In contrast, Snap SNAP.N reported its slowest quarterly revenue growth in over a year.
The company's focus on direct-response ads, designed to prompt specific actions like shopping, app downloads, or website visits, continued to drive ad demand. Its stock has risen about 35% so far this year.
"We’ve found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers," CEO Bill Ready said in a statement.
Pinterest has third-party ad deals with Google GOOGL.O, Amazon.com AMZN.O and advertising platform Magnite MGNI.O.
Global monthly active users on the platform rose 11% to 578 million, exceeding estimates of 553 million.
Pinterest expects third quarter revenue to be between $1.03 billion and $1.05 billion, compared with estimates of $1.03 billion.