The slowdown in Pinterest’s growth has weighed on quarterly earnings, driving shares down nearly 10% even though the company expects higher revenue during the current quarter than estimates.
As epidemic restrictions around the world ease, people are reducing the time they spend on social media, but the boom in advertising spending by companies has helped cushion the blow from lukewarm growth for users.
The number of active monthly users on Pinterest (MAU), a widely watched metric, grew only 30% to 478 million in the first quarter, and this was in contrast to the last quarter’s jump of 37% year-over-year. From mid-March, the easing of the epidemic restrictions slowed the growth of MAU in the US and reduced participation year on year as people spend less time on the internet. ”
Besides the slowdown in user growth, Pinterest reported better-than-expected numbers in the announced quarter, with the photo-sharing company saying it expects revenue to rise 105% in the second quarter, meaning a figure of around $ 558 million, compared to Refinitiv IBES’s estimate of 530. Million dollars.
As ad spending has recovered further this year from the recession in the first months of the COVID-19 crisis as the economic recovery picks up, prompting retailers to ramp up efforts to attract customers, Pinterest also expects a mid-teen jump in monthly active users globally in the quarter. Present.
Revenue from placing ads next to users’ pins or posts increased 78% to $ 485 million, beating expectations of $ 473.7 million.