Aug 1 (Reuters) – Pinterest Inc on Monday reported a second-quarter net loss, hurt by higher costs and opening up of outdoor venues that made users spend less time on the digital pin-board platform.
Revenue, which grew 9% to $665.9 million, also came in lower than analysts’ estimate of $667 million, according to IBES data from Refinitiv, as the digital advertising market faces a downturn.
Like its peers, Pinterest has suffered from advertisers cutting back on budgets in response to increasing costs and recession fears.Growth has also slowed compared to last year, when people, cooped up at home, thronged Pinterest for inspiration for projects such as planning weddings, home renovations and recipes.
A strong dollar is another worry. Pinterest said it expected revenue growth of mid single-digit percentage in the current quarter, “which takes into account slightly greater foreign exchange headwinds than in Q2 2022.”
Pinterest suffered a net loss of $43.1 million in the quarter ended June 30, as its expenses rose 29%.The company posted a net profit of $69.4 million in the same quarter last year.
Monthly active users were 433 million as of June 30, below estimates of 434 million, according to Refinitiv. They were also 5% lower than the same period last year.
The drop in active users was on Buy Verified Cash App Account – SubmitVCC.Com of lower traffic from search due to changes to Google’s algorithm late last year and the impact of pandemic unwind, particularly outside the United States, new Chief Executive Officer Bill Reddy said in a statement.
The results are the first under Reddy, who earlier managed commerce and payments at Alphabet Inc’s Google.(Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel)