Pinterest(PINS) ZACKS·2024-07-26 13:10Core Viewpoint - Pinterest, Inc. is expected to report second-quarter 2024 earnings on July 30, with revenue estimates at 1.34 per share to 1.66 per share to $1.76 for 2025 over the past 90 days [7] - The company has a proven earnings surprise history, with an average surprise of 38.8% over the last four quarters, including a 42.9% surprise in the last reported quarter [3][8] Competitive Landscape - Pinterest faces significant competition from larger companies such as Amazon, Facebook, Google, Snap, and Twitter, which offer a variety of online products and advertising services [4] Performance Metrics - Over the past year, Pinterest has gained 41%, outperforming the industry growth of 14.7% but lagging behind Meta Platforms, Inc. [11] Advertising and Monetization Strategies - Pinterest is enhancing its advertising platform, which is becoming increasingly attractive for consumer discretionary brands [14] - The company is focusing on improving operational rigor and incorporating AI models to enhance relevancy and personalization, which is expected to generate incremental revenues [18][24] - Pinterest is also introducing monetization opportunities in unmonetized international markets through third-party ad integration with Google [16] User Engagement and Growth - The company is witnessing solid net sales growth backed by strong user engagement across all regions, with improvements in engagement metrics like sessions, impressions, and saves [15][19] - Rising engagement among Gen Z users is a positive factor, with initiatives to increase the accessibility of mobile deep linking products [20] Financial Considerations - Pinterest's shares currently trade at a price/sales ratio of 6.43, higher than the industry average of 2.39 but lower than its historical mean of 7.06 [22] Operational Challenges - The company expects substantial increases in operating expenses due to expansion efforts, enhancing product offerings, and hiring additional employees [21]