Shares of the digital pinboard site slumped nearly 20
percent in extended trade, with investors looking past Pinterest beating
revenue estimates in the second quarter, as overall monthly active users (MAUs)
fell short of expectations.
Social media companies worldwide saw digital advertisement
spending and user growth surge as lockdowns accelerated the shift to
e-commerce, but analysts are now concerned if those gains are here to stay.
"Pinterest's use case was very compelling for people
staying at home during the pandemic, and with the economy opening up, there is
less focus on what Pinterest is best for," Wedbush analyst Ygal Arounian
said.
Overall MAUs, a widely watched metric, rose by only 9
percent to 454 million during the quarter. Analysts had estimated 487.1
million, according to Refinitiv IBES data. It had risen 30 percent in the prior
quarter.
"For the past year, we've highlighted how people came
to Pinterest for inspiration to reinvent their lives during such a difficult
time. Now as the world opens up, we're seeing the similar effect in the
opposite direction," Chief Executive Officer Ben Silbermann said during a
call with analysts.
Pinterest's MAUs in the United States, a major market for
the company, was nearly 7 percent lower as of July 27. Its global MAUs grew by
about 5 percent.
The shift in user engagement was more visible in Web than
mobile app users, Pinterest said, adding that Web users tended to be, on
average, less engaged and generated lower revenue.
Total revenue more than doubled to $613 million in the
quarter versus analysts' average estimates of $562.1 million.
©Reuters
0 comments:
Post a Comment