Pinterest beats on earnings and revenue even as monthly user number drops

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  • The company was able to report strong revenue and profit numbers by earning more money from each user.
  • Pinterest’s average revenue per user was up 37% from a year ago.

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Pinterest on Thursday reported better-than-expected earnings and revenue for the third quarter, despite a drop in monthly users.

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The company’s stock rose 6% in extended trading after closing at its lowest level in more than a year during the regular session.

Here are the prime numbers:

  • Adjusted Earnings Per Share: Refinitiv. 28 cents versus 23 cents expected by
  • Revenue: Refinitiv. expected by $633 million versus $630.9 million
  • Monthly Active Users: 444 million versus 460 million expected by StreetAccount
  • Average Revenue Per User: $1.41 versus $1.38 forecast by StreetAccount
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Pinterest said monthly active users fell 2% from the 454 million the company reported in July. This was the second consecutive quarter that Pinterest saw a decline in monthly users.

The company said that, as of November 2, its US MAUs were approximately 89 million. The global MAUs total are 447 million. Those numbers are down 9% and 2.6%, respectively, from the fourth quarter of 2020.

Revenue climbed about 43% compared to a year ago. Pinterest also posted net income of $94 million, even with its profits one year ago.

The company was able to report strong revenue and profit numbers by earning more money from each user. Pinterest’s average revenue per user was up 37% from a year ago.

Pinterest provided an estimate of fourth-quarter revenue growth “in the high teens” on a year-over-year basis. This was below Refinitiv’s expectations of 23.9% growth.

The company said advertisers’ willingness to spend on Pinterest’s services has fluctuated due to factors related to the pandemic, including supply chain issues, rising commodity prices and labor shortages. a regulatory filing. The company also said that it has experienced – and can continue to see – lower levels of user engagement, growth and retention rates as pandemic restrictions begin to ease.

Pinterest noted that Apple’s iOS privacy changes affected “the ability to track user actions from our platform and link their interactions with on-platform advertising.”

While the company didn’t provide specific details about how Apple’s new feature affected its financial results, other social media apps like Snap and Facebook said the changes in the latest quarter were a significant strain on their business.

The company did not address reports about a possible acquisition by PayPal.

PayPal was reportedly in talks to buy Pinterest last month, though the payments company later said it was not pursuing a deal.

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