shares in the extended session, causing the stock to fall more than 16% after the company reported its monthly active user (MAU) count fell in the second quarter as pandemic restrictions around the world began to ease.
Pinterest (ticker: PINS) said late Thursday that the number of MAUs was down 5%, or about 20 million users, to 454 million compared to the first quarter. The image-sharing platform said the “engagement headwind” continued into July and as of Tuesday, US MAUs fell 7% compared to a year ago. The global number of users grew 5% in July compared to the same period last year.
Pinterest CEO Ben Silbermann said home ordering has boosted engagement and use of the platform over the past year. But as economies around the world have begun to reopen, some of the behaviors that were common a year ago during the height of the pandemic — for example, refurbishing, homeschooling and cooking at home — have changed and are not as common, he said.
“Over the past year, we’ve highlighted how people came to Pinterest for inspiration to reinvent their lives during such a difficult time,” he said. “As the world opens up, we’re seeing the same effect in the opposite direction.”
Pinterest said it wouldn’t be a problem MAU third quarter growth forecast as constraints from the spread of Covid-19 continue to fluctuate.
Despite sequentially declining user numbers, Pinterest exceeded analyst expectations for adjusted earnings per share and revenue.
The social media platform reported second quarter net income of $69.4 million, representing 10 cents per share, compared to a net loss of $100.8 million, or a loss of 17 cents per share, in the same period a year ago. Adjusted for, among other things, share-based compensation, earnings were 25 cents per share. Sales more than doubled to $613.2 million.
Analysts had expected adjusted second-quarter earnings of 13 cents a share on revenue of $562.2 million.
Pinterest said it expects third-quarter revenue to grow 40% from a year ago, which is roughly in line with analyst estimates. For the third quarter, Wall Street expects non-GAAP earnings of 19 cents per share on revenue of $635.4 million.
Digital advertising companies have reported mixed results for the June quarterly earnings season.
(TWTR), handily beat expectations, sending stocks skyrocketing.
(FB) did not please investors when it reported gains late Wednesday.
Pinterest shares were down 6% during the regular session to close at $72.04.
Write to Max A. Cherney at firstname.lastname@example.org