Pinterest Reaches 367 Million Monthly Active Users, Boasts Better Growth Than Snapchat and Twitter

Pinterest has repeatedly reported record-high levels of usage of its services during the lockdowns. Now, Pinterest has released the results for Q1 2020, highlighting a stable increase in actives users as well as revenue.

Pinterest has reached 367 million monthly active users during the quarter adding 32 million more users as compared to Q4 2019. The report boasts a 26% year over year growth rate.

Most social media platforms are experiencing increased usage amid the coronavirus pandemic. The stats show us the rising popularity of Pinterest as it has outpaced Snapchat, Twitter, LinkedIn, and even Facebook in terms of growth rate. Facebook is a far more solid platform, and therefore, we can say that its growth momentum in this respect is slower. Pinterest is growing at a solid pace and now has more users as compared to Snapchat and Twitter.

Pinterest, in the usage notes of its platform, stated that the company has seen an expansion in its usage and significantly increased searches for topics including ‘ways to entertain and educate kids,’ ‘how to clean during the lockdowns.’ People are also searching for DIY ideas to make masks. Pinterest also stated that people are searching for future-oriented interest like event planning, or vacation.

Although the ongoing crisis influenced these trending searches, the increased usage of pins can help Pinterest grow in the future too. For instance, if Pinterest provides better results for these queries, users will surely come back to Pinterest for various purposes in the future.

As of revenue, Pinterest earned $272 million during the quarter, recording a 35% year-on-year increase. The results are obviously tremendous, but Pinterest warned of a slowdown due to the coronavirus pandemic. Pinterest stated that the platform began experiencing a sharp downturn in mid-March.

When it comes to average revenue per user (ARPU) Pinterest claimed that "Global ARPU grew 7% year over year to $0.77, compared to $0.73 in Q1 2019. An increase in advertising demand from advertisers on our platform drove higher ARPU year over year globally."

As stated above, the company has recorded a shift of interest towards a more lighthearted approach to the coronavirus as people are increasingly searching for topics like travel and vacations, etc.

But Pinterest will also be affected due to COVID-19 like all other social media platforms. The company withdrew its whole year guidance for 2020 in April, which was the result of coronavirus lockdowns. Pinterest has denied providing any further guidance expectations on its earnings for the remaining year.

The company recorded that its ad revenue growth was mainly induced by shopping ads, video, and conversion optimization. Pinterest’s catalog feed uploads surged by 144% during the Q1 2020. Pinterest recorded a 53% YoY increase in its sales and marketing expenses. This increase in costs was driven due to a rise in share-based compensation following the company’s IPO for Apr 2019, as share-based compensation expense was $1 million in Q1 2019, which is %81 million for the Q1 2020.

It seems that Market analysts were not impressed by the company’s YoY growth, and the company’s shares fell by 19%. Keeping in view the surged usage of Pinterest during the coronavirus lockdowns, the market expected a more significant jump, but the company was already following a more substantial growth curve as compared to other social media platforms.

Ultimately, the overall report was not that great, although there are plenty of signs suggesting that Pinterest is following the right track.

Read next: Pinterest Highlights Growing Pin Trends During The Coronavirus Lockdowns To Help Businesses Reach More Audiences
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