Pinterest Inc.’s monthly active users for the third quarter fell short of estimates on Thursday, as curbs on the pandemic encouraged users of the digital scrapbooking app to put their phones aside and take more steps.
Monthly active users (MAUs) rose 1% to 444 million, according to FactSet, an estimate not exceeding 460 million by analysts. Last year, the company had registered a growth of 37% as users stuck at home turned to social media to entertain themselves.
“We believe the slowdown was caused by the pandemic,” Chief Financial Officer Todd Morgenfeld said in an interview. Many GenZ users are returning to school, while others who used the app to explore cooking and home decor projects during the lockdown are now venturing out. More out, he added.
However, in a sign that the pandemic-accelerated turnaround for online shopping may be here to stay, Pinterest’s total revenue rose 43% to $633 million in the quarter. The app generates revenue by placing ads next to “Pins” or posts uploaded by users.
According to Refinitiv’s IBES data, revenue beat analysts’ average estimate of $630.9 million.
Pinterest’s users using the in-app purchase features, called “pinners,” increased 60% from a year earlier.
Net income for the quarter was $94 million. Excluding commodities, it gained 28 cents per share.
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