Pinterest Inc. posted strong revenue and user growth in the third quarter, as the social-media company saw significantly greater pandemic-fueled engagement than it did in the spring and said it benefited from an advertiser boycott at Facebook Inc.
The image-sharing company that makes money exclusively through advertising sales said revenue rose 58% from a year earlier to $443 million, compared with 4% growth in the second quarter. Analysts surveyed by FactSet expected sales of $383 million.
An advertiser boycott against Facebook over the summer helped Pinterest, the company said. But it added that it isn’t clear how long that trend will last, particularly after the U.S. presidential election takes place. Facebook and Twitter Inc. report third-quarter results Thursday.
In the third quarter, advertiser demand was driven by strength from small and medium businesses, Pinterest said.
The strong results drove the stock up more than 24% in after-hours trading Wednesday, more than tripling its rise since the start of the year.
