Day: May 5, 2020

MercadoLibre to invest over $700 million in Brazil as coronavirus boosts e-commerce

SAO PAULO (Reuters) – Latin American e-commerce company MercadoLibre is one of the few firms not scaling back spending amid the coronavirus pandemic and plans to move forward with a planned 4 billion reais ($717 million) investment in Brazil this year, an executive told Reuters on Tuesday.

After seeing a sharp drop in demand in the second half of March, the Argentina-based company reported strong sales in April with an increasing number of consumers shopping online while social distancing measures were in place.

“We might have to redirect some spending to logistics due to the rise in e-commerce demand, but for now the idea is to keep capital expenditure,” said MercadoLibre’s vice president for Latin America, Stelleo Tolda.

He noted that stay-at-home measures led a growing number of smaller vendors to seek digital platforms such as MercadoLibre to continue selling their products and preserve cash flow.

The e-commerce firm has

Read More

Pinterest reports bigger-than-expected loss as costs rise

(Reuters) – Pinterest Inc reported a bigger-than-expected first-quarter loss on Tuesday as the image sharing company incurred higher costs, sending its shares down 10% in extended trade.

FILE PHOTO: The company logo for Pinterest, Inc. with trading information is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., April 18, 2019. REUTERS/Brendan McDermid

The company had withdrawn its full-year outlook in April, citing growing uncertainty due to the impact of the pandemic on the economic environment and its effect on advertiser demand.

“Our cost of revenue has generally grown with users rather than revenue, which in this environment puts some pressure on gross margins,” Pinterest said.

The company said it saw a sharp deceleration in the middle of March as advertisers responded to changes in demand due to COVID-19.

Advertisers have pulled or cut marketing budgets to rein in costs due to the coronavirus-related

Read More

Pinterest revenue beats estimates as users surge amid lockdowns

FILE PHOTO: The company logo for Pinterest, Inc. with trading information is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., April 18, 2019. REUTERS/Brendan McDermid

(Reuters) – Image sharing company Pinterest Inc’s first-quarter revenue beat estimates on Tuesday, as coronavirus-led lockdowns forced people to stay indoors and seek engagement and entertainment online.

The company, which calls its users “Pinners”, said monthly active users globally jumped 26% to 367 million during the quarter and it saw record levels of engagement.

Use of social media apps has surged recently as the COVID-19 pandemic has forced people to stay at home, and made them increasingly reliant on these apps to stay connected.

Pinterest, however, withdrew its full-year outlook in April, citing growing uncertainty due to the impact of the pandemic on the economic environment and its effect on advertiser demand.

“We began to experience a sharp

Read More

Match quarterly revenue hit by slowing Tinder growth

FILE PHOTO: The dating app Tinder is shown on an Apple iPhone in this photo illustration taken February 10, 2016. REUTERS/Mike Blake/Illustration

(Reuters) – Match Group Inc (MTCH.O) reported quarterly revenue that fell short of Wall Street estimates on Tuesday, hit by slowing growth in its popular dating app “Tinder” as fewer people signed up and paid for its premium features amid the COVID-19 pandemic.

The company had flagged earlier that in Europe, which is hard hit by the novel coronavirus, fewer subscribers are signing up with more significant declines in Italy and Spain

Total revenue rose 17% to $544.6 million in the first quarter from a year ago, just shy of analysts’ estimates of $544.9 million, according to IBES data from Refinitiv.

Tinder, which competes with rival Bumble, added about 100,000 average subscribers in the quarter, it’s lowest in at least a year, taking its total average

Read More