Pinterest, Inc. (NYSE:PINS) saw its shares plummet 14% on Wednesday following a softer-than-expected outlook for the third quarter. The company reported Q2 revenue of $854 million, a 21% increase year-over-year, exceeding analyst expectations of $848.75 million. Adjusted earnings per share (EPS) came in at $0.29, slightly above the Street estimate of $0.28.

Pinterest also reached a milestone of 522 million global monthly active users, a 12% increase compared to the previous year. CEO Bill Ready emphasized the company's successful monetization strategies, citing improved performance from advertisers and a greater share of advertising budgets from major brands. He attributed these gains to the rollout of AI-powered products and experiences.

For the third quarter, Pinterest projects revenue between $885 million and $900 million, reflecting a 16-18% year-over-year growth. However, this forecast falls short of the analyst consensus of $908 million, leading to a sharp decline in the company's stock price.