The stock temporarily lost more than 17 percent of its value in after-hours trading on Thursday. Pinterest previously announced that the number of active users on the platform at least once a month had dropped from 478 to 454 million in three months.
At the same time, Pinterest increased its sales year-on-year by 125% to $613 million, significantly exceeding analyst expectations. Bottom line, there were black numbers of $69.4 million after losing just under $101 million in the same quarter a year earlier.
Pinterest was one of the winners of the coronavirus pandemic last year: More people used the app’s shutdown time. On Pinterest, users can save images from the Internet on so-called profile boards on specific topics – for example, when planning a vacation or when they want to remodel their home. Pinterest also sees itself as a kind of visual search engine where the program can identify similar objects. For some time now, Pinterest has also wanted to use these skills to build a business as a platform for retailers. The main source of income is advertising.
Tech investor and former industrial analyst Rich Greenfield, when looking at the quarterly numbers, invited investors to see the forest behind the trees. Pinterest has essentially lost out on desktop users, with whom it’s hard to make money — while the more lucrative smartphone app is growing, he said.
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