Reuters – Pinterest Inc topped quarterly revenue estimates on Wednesday as the imagesharing platform benefited from higher ad spending by businesses after COVID19 curbs eased globally.
Revenue rose 18 in the first quarter to 575 million, compared with the average analyst expectation of 572.5 million, according to Refinitiv IBES data.
Like its peers, Pinterest recorded strong user growth in the early months of pandemic as homebound consumers sought projects to keep themselves entertained. But that boom has faded with the economic reopening, prompting the company to double down on efforts to grow its ad business.
Pinterest said its monthly active users MAUs – a key metric that shows engagement levels – declined 9 to 433 million in the quarter ended March 31. The figure also missed a FactSet estimate of 437.9 million.
But its mobile app MAUs, the group that represents most of Pinterests revenue, grew by midsingle digits.
“We also saw continued strength in the younger demographic, with Gen Z users growing midsingle digits,” the company said.
Net loss was 5 million for the quarter.