Pinterest reported that its third-quarter revenue increased by 43 percent to $633 million due to increase in demand from large retail advertisers and 96 percent growth in its international business.
Advertisers in the consumer packaged goods segment, however, were hurt by global supply chain constraints, impacting Pinterest’ revenue growth rate.
Ben Silbermann, CEO and co-founder of Pinterest, said: “Revenue grew 43 percent year-over-year and I am proud of the team’s progress in launching a number of new products for both creators and brands, bringing more video content and shoppable features to Pinterest.”
The strategic priorities for 2021 remain anchored in content, Pinner experience, advertiser success and shopping. It plans to continue investing in these areas this year.
Its R&D efforts will focus on Pinner product, ad product and measurement investments. It aims to grow headcount to fund strategic initiatives.
The company said it did not face any material impact from Apple’s privacy changes which have made it difficult for social media companies to target audiences and measure advertising capabilities.
Pinterest’s monthly active users (MAU), meanwhile, grew just 1 percent to 444 million. Last year, the company had notched a 37 percent surge as users stuck at home turned to social media to keep themselves entertained.
“We believe the slowdown was due to the pandemic unwind,” Chief Financial Officer Todd Morgenfeld said in an interview. Many GenZ users are returning to school, while others who had used the app to explore cooking and home decor projects during lockdowns are now venturing out more, he added.
Its users, called pinners, using the app’s shopping features increased 60 percent from a year ago.
Net income was $94 million during the quarter ended Sept. 30, compared with a loss of $94.2 million, a year ago.
Pinterest, the image-sharing company, forecast fourth-quarter revenue growth in the high-teens percentage range.