With the introduction of the advertisements, Pinterest become one of the few internet companies to achieve the paths of profitability. With Pinterest joining the profitability phase, the stock rose by nearly 16% in after-hours sessions. The shares of photo-sharing social network rose by 16% in after-trading sessions when the company reported a sharp surge in the revenue and average revenue per user in the United States. According to the reports shared by the company, the revenue rose by 62% to $261 million. Although, the company faced the losses of $1.16 billion or roughly $2.62 per share. The loss mostly contains the costs from the Initial Public Offering of the company from April.
Pinterest CEO Ben Silbermann said that the company did see a surge in advertising revenue during the Easter season. With interactive video advertisements on the platform, the revenue increase has been noticed. In a conference call with the media personnel, CEO Ben Silbermann shared the revenue reports and expectations for the company. According to Ben Silbermann, the overall revenue for this year is expected between $1.095 billion and $1.115 billion, from $1.055 billion to $1.080 billion in the last year.
With the reports, most of the analysts were shocked as the actual figures overshadowed the expectations. With more than the expectations, everyone is willing to invest in the ad-supported internet companies as most of them are reporting a surge in the revenue. Facebook, Snap.INC, Alphabet, Twitter, and others reported better revenue figures due to the increased income from advertising. But, the company is facing some severe deficit in the international revenue per quarter. The company reported $15 million in revenue from the global audience, but the expected figure was $24 million in the quarter.