Pinterest shares plunge as easing of pandemic restrictions weighs on user growth

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Pinterest Inc. on Tuesday reported 78% year-on-year revenue growth for the first quarter, but its user growth fell short of analysts’ expectations as COVID-19 pandemic restrictions eased. The online bulletin board company said its global monthly active users increased 30% year-over-year to 478 million. Analysts had forecast that number to be slightly above 480 million.

“Beginning in mid-March, easing pandemic restrictions slowed the growth of the US MAU. And reduced commitment year over year as people spent less time online,” the company wrote in a letter. to shareholders. “In the first quarter, we saw a good retention of the MAUs that we obtained during 2020, but we do not yet know if this retention will last or how long it will last.” Pinterest PINS, + 1.11% shares fell 10% after hours, after rising more than 1% in the regular session to close at $ 77.58. However, the company targeted international growth. “This quarter, we continued strong growth internationally, including our recent advertising launch in Brazil, and we made significant progress with purchases, making it easier for people to discover and buy the products they find on Pinterest,” said the CEO Ben Silbermann in a news story. launch. The company reported a first-quarter loss of $ 21.7 million, or 3 cents a share, compared to a loss of $ 141.1 million, or 25 cents a share, in the same period last year. Adjusted earnings were $ 83.8 million, or 11 cents per share, adjusted for share-based compensation, depreciation and amortization and more. Revenues increased to $ 485.2 million from $ 271.9 million in the prior year quarter. Analysts surveyed by FactSet had forecast earnings of 6 cents a share on revenue of $ 471.7 million. Pinterest shares are up more than 17% so far this year and more than 288% in the last 52 weeks. By comparison, the S&P 500 SPX Index, -0.02%, is up 12% year-to-date, and is up 50% last year.