Pinterest shares (NYSE:) rose more than 8% on Thursday in premarket trading after it reported a stronger-than-expected quarter 2022 EPS.

Social media giant Facebook reported an adjusted EPS value of 10c. This is higher than the consensus estimate of 4c. The revenue came in at $575 Billion, which is just below the analyst consensus estimate of $573 Million.

Global MAUs fell 9% YoY to 433million, which is below the consensus estimate of 437.9million. PINS reported $1.33 global average revenue for each user, an increase of 28% YoY compared with consensus estimates of $1.31.

Pinterest predicts that Q2’s revenue will grow by approximately 11% YoY. The social media company noted that the trends that drove revenue growth “were offset by macro headwinds, including supply chain issues and other factors, which continued to impact one of our largest segments, CPG advertisers, as well as some mid-market advertisers.”

“In Europe, Russia’s invasion of Ukraine compounded a difficult macro environment, impacting many of our advertisers in that region,” the company said.

Mark Kelley, a Stifel analyst commented:

“We believe management is making the right product changes, and we are hopeful that efforts to spur engagement bear fruit, but we need to see more evidence of stabilization before we get more positive,” Kelley said in a client note.

Justin Post, Bank of America Analyst, lowered the price target from $46.00 to $38.00 per Share. This is because investments are driving greater engagement.

“We see Pinterest as a high quality platform for advertisers and think users could bottom in 2Q. However, given an uncertain transition in the Pinterest use case, we are reiterating our Neutral rating,” Post added.

By Senad Karaahmetovic