The Pinterest photo app has increased sales, but the number of active users continues to decline. Investors don’t like that at all.
Investors are cracking down on Pinterest after the photo app fell short of user expectations in the past quarter. The share temporarily lost more than 17 percent of its value in after-hours trading.
Pinterest previously announced that the number of users active on the platform at least once a month had decreased from 478 to 454 million within three months.
At the same time, Pinterest increased sales year-on-year by 125 percent to 613 million dollars, significantly exceeding analysts’ expectations. The bottom line was there were black numbers of $ 69.4 million after a loss of just under $ 101 million in the same quarter last year.
Pinterest was one of the winners of the corona pandemic last year: More people used the lockdown time for the app. At Pinterest, users can save photos from the internet on so-called pinboards on specific topics – for example, when planning a vacation or want to redesign their home. Pinterest also sees itself as a kind of visual search engine in which software 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 industry analyst Rich Greenfield, looking at the quarterly numbers, called on investors to see the forest behind the trees. Pinterest has mainly lost desktop users, with whom it is difficult to earn money – while there is growth in the more lucrative smartphone app, he argued.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
