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 deceleration in the middle of March as advertisers responded to changes in demand related to COVID-19,” the company said on Tuesday.
Pinterest’s total revenue rose 35% to $272 million, beating analysts’ average estimate of $270.1 million, according to IBES data from Refinitiv.
Revenue in the United States, the company’s major market, grew 27% to $237 million.
Pinterest generates revenue by placing advertisements next to the pins, or posts, uploaded on the site by users.
Reporting by Akanksha Rana in Bengaluru; Editing by Vinay Dwivedi