Pinterest’s active users drop as pandemic boom wanes
Pinterest monthly active users declined six per cent during the fourth quarter to the lowest since June 2020, signalling that a pandemic-driven surge in demand was cooling off as easing restrictions encourage people to step out more.
The image sharing platform’s monthly active users (MAUs) – a key metric that shows engagement levels on the website – was 431 million for the quarter, the company said on Thursday. That missed analysts’ estimate of 447.95 million, according to FactSet.
Like its peers, Pinterest had seen a surge of interest when the pandemic first struck after users took to the digital pinboard to plan DIY projects or “pin” interesting ideas to keep themselves entertained during lockdowns.
Now, social media companies are focusing on advertising efforts to sustain revenue growth, with large retailers and small-business owners taking to these platforms to attract online shoppers.
Pinterest’s revenue for the reported quarter rose 20 per cent to $847 million, surpassing analysts’ estimate of $827 million, according to Refinitiv IBES data.
Facebook owner Meta Platforms also saw a decline in daily active users from the previous quarter for the first time. The tech giant forecast weaker-than-expected revenue for the current quarter on Wednesday, blaming Apple’s privacy changes and increased competition from rivals like TikTok.
Pinterest now faces an uphill task to scale its video-first features Pinterest TV and Idea Pins, as well as influencer marketing efforts, especially when platforms YouTube, Instagram and TikTok have a significant lead.
Its net income was $175 million for the quarter ended December 31, compared with $207.8 million a year earlier.