Pinterest Inc’s second-quarter user growth missed Wall Street estimates on Thursday, sending its shares 11% lower in extended trading as the image-sharing company said growth in the United States was decelerating in the latest quarter.
As of July 27, U.S. MAUs have declined nearly 7% year-over-year, while global MAUs have grown nearly 5%, it said.
Social media companies across the world saw digital ad spending and user growth surge as lockdowns accelerated the shift to e-commerce, but easing COVID-19 curbs are encouraging users to keep aside their phones and spend more time outside.
The image-sharing company’s total revenue more than doubled to $613 million in the quarter, compared with analysts’ average estimates of $562.1 million, according to IBES data from Refinitiv.
The digital pinboard site, which generates revenue by placing advertisements next to posts uploaded by users, also said it expects third-quarter revenue to grow in the low-40s range on a percentage basis.
However, Pinterest’s monthly active users (MAU), a widely watched metric indicating users’ level of engagement with the platform, grew only 9% to 454 million in the second quarter. Analysts on average estimated 487.1 million.
The company said it would not provide guidance for MAUs, citing the “lack of visibility” caused by the pandemic.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor
Read all the Latest News, Breaking News and Coronavirus News here.
Comments
0 comment