July 29, 2021
(Reuters) – Thursday’s Pinterest Inc slowed user growth in the U.S. as people who used the platform for crafts and DIY projects during the pandemic took more steps as the curbs eased. Said that there is.
Digital pinboard site share fell nearly 20% on expansion transactions, and investors were above forecasts for second-quarter earnings as overall monthly active users (MAUs) were below expectations.
Social media companies around the world have seen a surge in digital advertising spending and user growth as the blockade has accelerated the transition to e-commerce, but analysts are worried about whether these profits will stay here. increase.
“Pinterest’s use cases are so compelling to people at home during a pandemic, and the economy is open, so it doesn’t focus on what Pinterest is best for.” Wedbush analyst Ygal Arounian said.
Overall MAU, a widely-watched indicator, increased 9% during the quarter to 454 million. According to Refinitiv IBES data, analysts estimate 487.1 million. It rose 30% in the previous quarter.
“Over the past year, we have emphasized how people came to Pinterest to get inspiration to reinvent their lives in these difficult times. When the world opens, we oppose it. The same impact can be seen in the direction, “CEO Ben Silbermann said in a phone call with an analyst.
Pinterest’s MAU in the company’s main market, the United States, fell by about 7% as of July 27. Its global MAU has increased by about 5%.
According to Pinterest, changes in user engagement are more pronounced on the web than mobile app users, adding that web users tend to be less engaged and less profitable on average.
Total revenues for the quarter more than doubled to $ 613 million, compared to an average analyst estimate of $ 562.1 million.
(Report by Tiyashi Datta in Bangalore; edited by Devika Syamnath)
As U.S. user growth slows, social media declines and socialization hits Pinterest
Source link As U.S. user growth slows, social media declines and socialization hits Pinterest