Pinterest expects slower quarterly revenue growth as ad competition heats up

Pinterest has been expanding Performance+, its AI-powered suite for advertisers, to attract more marketers by helping them optimize and scale their campaigns with less manual effort.

As 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.

Last month, Google revamped Google Images with AI-powered personalized feeds and visual discovery features resembling Pinterest, indicating a broader push for AI-driven search and shopping by the search-engine giant.

"AI is at the heart of our momentum and is a clear accelerant for our business," CEO Bill Ready said.

Its global monthly active users rose 11% to 640 million in the second quarter from a year ago, while average revenue per user rose 7% to $1.86.

Earlier 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.

Aug. 4 (Reuters) - Image-sharing platform Pinterest forecast slower revenue growth for the third quarter on Tuesday, signaling intense competition for digital advertising from bigger players including Meta's Instagram.

Pinterest expects its current-quarter revenue to be in the range of $1.19 billion to $1.21 billion, representing , compared with analysts' average estimate of , according to data compiled by LSEG.