Pinterest has reported a decline in the number of active users despite seeing better-than-expected earnings and revenue in its latest report.
The social media platform’s stock rose six per cent in extended trading after closing at its lowest in over a year during the regular session.
Pinterest reported revenues of $633 million, which beat analysts expectations of $630.9 million, an impressive rise of nearly 43 per cent year-on-year.
Despite its positive financial growth, it saw 16 million fewer-than-expected active monthly users on the site after reporting 440 million compared to the figure of 460 million projected by StreetAccount, a decline of two per cent.
This marks the second quarter in a row that Pinterest saw a decline in monthly users, despite the roll out of a number of new ecommerce features.
These include features to enable its creators to earn off their pins.
Pinterest said that advertisers’ willingness to spend on the platform’s services fluctuated during the pandemic and was also hindered by supply chain issues, labour shortages and rising commodity prices, in a regulatory filing.
The company also said it has experienced — and may continue to see — lower levels of user engagement, growth and retention rates as pandemic restrictions begin to lessen.
Apple’s landmark iOS privacy changes have also affected the social media platform’s “ability to track user actions off our platform and connect their interactions with on-platform advertising,” it said.
Pinterest declined to address the reports that it was being sought after by payments giant PayPal.