Pinterest: higher ad revenues and lower user engagement

Company blames the easing of Covid-19 restrictions
Pinterest: higher ad revenues and lower user engagement

Pinterest’s quarterly results beat expectations concerning ad revenues, but the social site noted that user growth is slowing and engagement is lowering as a result of easing Covid-19 restrictions.

Monthly active users (MAUs) grew 30% to 478 million, disappointing markets that had predicted (FactSet) a 480.5 million MAUs and causing a 10% fall of the share price. Pinterest said it expects “flat” user growth in the U.S. market in the second quarter, from the year-ago period.

“We continue to navigate uncertainty given the ongoing Covid-19 pandemic and other factors,” the company wrote in a letter announcing its Q1 results.

“Starting in mid-March, the easing of pandemic restrictions slowed US MAU growth and lowered engagement year over year as people spent less time online,” Pinterest said. “In Q1, we saw good retention of the MAUs we gained during 2020, but we still don’t know if or how long this retention will last. Our understanding of future engagement levels is similarly limited.”

On the good news, the company reported revenue of $485 million for the quarter, up 78% compared with a year prior. Pinterest’s net loss shrunk 85% to $21.7 million, from a loss of $141.2 million a year ago.

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