{"slug": "pinterest-expects-slower-quarterly-revenue-growth-as-ad-competition-heats-up", "title": "Pinterest expects slower quarterly revenue growth as ad competition heats up", "summary": "Pinterest Inc. forecast third-quarter revenue growth of 13% to 15%, slower than the 18% growth in the second quarter, as competition from Meta's Instagram, Reddit, and Google intensifies, sending shares down 9% in extended trading. The company reported second-quarter revenue of $1.18 billion, beating estimates, and CFO Julia Donnelly cited pressure from Asia-based cross-border retailers affected by European regulatory actions. Pinterest's AI-powered advertising suite Performance+ has shown early promise but hasn't generated the same enthusiasm as competitors' offerings, according to Emarketer analyst Marisa Jones.", "body_md": "# Pinterest expects slower quarterly revenue growth as ad competition heats up\n\nIts competitors such as Meta and Google launched similar products to attract advertisers\n\nIMAGE-SHARING platform Pinterest forecast slower revenue growth for the third quarter on Tuesday (Aug 4), a sign of tough competition for digital advertising from bigger players including Meta’s Instagram, sending its shares down 9 per cent in extended trading.\n\nPinterest has been expanding Performance+, its AI-powered suite for advertisers, to attract more marketers by helping them optimise and scale their campaigns with less manual effort.\n\nAs Meta continues to improve its Advantage+ ad automation tools, Reddit launched a broadly similar product and with ads becoming a larger focus for OpenAI, competition is expected to increase further.\n\nLast month, Google revamped Google Images with AI-powered personalised feeds and visual discovery features resembling Pinterest, indicating a broader push for AI-driven search and shopping by the search-engine giant.\n\n“We faced incremental pressure mid-quarter from Asia-based cross-border retailers impacted by regulatory actions particularly in Europe and that pressure is continuing in the third quarter,” CFO Julia Donnelly said on the company’s post-earnings call.\n\nPinterest expects its current-quarter revenue to be in the range of US$1.19 billion to US$1.21 billion, representing a 13 per cent to 15 per cent growth, compared with analysts’ average estimate of US$1.2 billion, according to data compiled by LSEG.\n\nThat is slower than the 18 per cent revenue growth in its second quarter. The company reported US$1.18 billion in revenue for the three months ended Jun 30, beating estimates of US$1.15 billion.\n\n“Its AI tools have shown early promise, but they haven’t generated the same level of enthusiasm as competitors’ offerings,” said Emarketer analyst Marisa Jones.\n\nPinterest‘s global monthly active users rose 11 per cent to 640 million in the second quarter from a year ago, while average revenue per user rose 7 per cent to US$1.86.\n\nEarlier this year, the company completed its acquisition of tvScientific, a move aimed at extending advertisers’ reach beyond social media and into connected TV and giving Pinterest a broader pool of ad budgets. REUTERS\n\nDecoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.\n\nShare with us your feedback on BT's products and services\n\n[TRENDING NOW](/pulse?ref=trending-now)\n\nUOB CEO’s youngest child Grant Wee turns burnout into a wellness business\n\nCold Storage moves into convenience retail with On The Go, to replace FairPrice at 58 Esso stations\n\nThree Arrows going after founder Zhu Su’s wife for US$40 million from Dubai property sale\n\nA ‘shadow bank’ hiding in Singapore’s Little India casts light on financial services gap", "url": "https://wpnews.pro/news/pinterest-expects-slower-quarterly-revenue-growth-as-ad-competition-heats-up", "canonical_source": "https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/pinterest-expects-slower-quarterly-revenue-growth-ad-competition-heats", "published_at": "2026-08-04 23:51:18+00:00", "updated_at": "2026-08-04 23:53:17.734517+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-products", "ai-tools"], "entities": ["Pinterest Inc.", "Meta", "Instagram", "Reddit", "OpenAI", "Google", "Julia Donnelly", "Marisa Jones"], "alternates": {"html": "https://wpnews.pro/news/pinterest-expects-slower-quarterly-revenue-growth-as-ad-competition-heats-up", "markdown": "https://wpnews.pro/news/pinterest-expects-slower-quarterly-revenue-growth-as-ad-competition-heats-up.md", "text": "https://wpnews.pro/news/pinterest-expects-slower-quarterly-revenue-growth-as-ad-competition-heats-up.txt", "jsonld": "https://wpnews.pro/news/pinterest-expects-slower-quarterly-revenue-growth-as-ad-competition-heats-up.jsonld"}}