Pinterest Inc came posting beating revenue estimates on Tuesday for its first quarter that came largely because of the people staying at their homes under lockdown orders in coronavirus outbreak remained seeking entertainment and engaging activities online for more period of time.
The image sharing company’s number of monthly active users, called “Pinners” by the company, increased by 26% worldwide, reaching 367 million user across the world during the reported quarter while noticing record breaking levels of engagement.
The COVID-19 pandemic impacting almost every part of the world, forced the people to stay at homes which resulted in more use of social media apps by them as they remained increasingly reliant upon such apps to stay in touch with their loved ones.
However the U.S. social media web and mobile application company last month came withdrawing its full year forecast for 2020 in the face of uncertain global economic environment and due to its impact on advertiser demand which is likely to remain affected for some time even if situation came back to normal immediately.
In its statement on Tuesday, Pinterest said that it started noticing a sharply declining business in March as advertisers began responding to the impacts of COVID-19 making reviews to decelerating demands.
With a growth rate of 35% in the first quarter, total revenue generated by Pinterest rose to $272 million that came above to analysts’ estimates of $270.1 million for the same, according to IBES data from Refinitiv.
The United States is the major market of Pinterest from where it generates most of its total revenue, and in the reported quarter, U.S. revenue saw an increase of 27% to generate $237 million of revenue for the company.
Pinterest users upload pins or post on the platform, and company places advertisements next to those images to generate revenue.