Decades-high inflation is forcing companies to make cuts to
their marketing budgets this year, driving online players such as Alphabet,
Meta and Snap to intensely compete for shrinking ad dollars. Pinterest's
third-quarter revenue grew 8 percent to $684.6 million, mirroring a slowdown
seen at its bigger rivals. The figure was, however, higher than the $666.71
million expected by analysts, according to Refinitiv data.
The return of outdoor activities has also meant that fewer
people are engaging with the image-sharing platform for inspiration to take up
activities such as home renovation and recipe-based cooking. Pinterest's global
monthly active users (MAUs) were flat at 445 million, but they came in above
Factset estimates of 437.4 million.
Earlier this month, shares of Pinterest slid along with
YouTube-parent Alphabet, Facebook-parent Meta, and Twitter after Snap, the
owner of photo messaging app Snapchat forecast zero revenue growth for the
current quarter. The announcement triggered a slide in other social media
stocks dependent on advertising revenue.
The company posted a net loss of $65.2 million, or $0.10 per
share, in the quarter ended September 30, compared with a profit of $94 million,
or $0.14 per share, a year earlier.
Pinterest's global average revenue per user rose 11 percent
to $1.56. Pinterest said it was expecting revenue growth in mid-single-digit
percentage in the current quarter, due to slightly greater foreign exchange
headwinds than in the third quarter. © Reuters
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