Pinterest estimated first-quarter revenue considerably below Wall Street expectations on Thursday, indicating that it will face stiff competition from larger social media competitors even as the digital advertising industry stabilizes.
However, shares of the San Francisco, California-based company, which had fallen more than 9%, recovered in extended trading when CEO Bill Ready announced an ad integration agreement with Google, reported Reuters.
Ready noted that the agreement, allowing Pinterest to sell advertisements through Google’s Ad Manager, will help monetize various underused overseas markets.
Last year, Pinterest collaborated with e-commerce behemoth Amazon, which analysts predicted would drive meaningful advertising investment on the platform this year.
The report noted that Facebook and Instagram have become the go-to platforms for advertisers in an uncertain economy due to their extensive user base and greater engagement with tailored ads.