April 27 - a slowdown in the user growth of PinterestPinterest Inc has tarnished an otherwise strong quarterly report card, sending shares on Tuesday down about 10% aftermarket even though the company forecast current-quarter revenue above estimates.
With the tepid restrictions easing across the world, people are investing in social media, but a boom in ad spending by companies helped soften the hit from pandemic business growth.
In the first quarter, the daily active users of Pinterest, a widely watched measure, grew just 30% to 478 million monthly in the month of April.This was in contrast to the 37% year-over-year jump in 2016 for China.
Starting in mid-March, the easing of MAU expansion from pandemics lowered engagement and slows growth year-over-year as people spent less time on Pinterest, said Pinterest.
Besides the slowdown in user growth, in the reported third quarter over many years, Pinterest reported better-than expected numbers.
The image-sharing company said it anticipated revenue growth in the second quarter of 105%. This implies a figure of $ 558 million, compared to a Refinitiv IBES estimate of $530 million.
This year, advertising spending has recovered more than previously from the slump in the first months of the COVID-19 crisis as economic recovery picks up steam, prompting retailers to increase efforts to attract customers.
Pinterest forecast a mid-teens jump in the global monthly active users in the current quarter.
The revenue, which is generated by placing advertisements next to user pins or posts, soared to $485 million and beat expectations at $473.7 million.How are you going to take a challenge?