Pinterest’s stock price rose as much as 30% on Wednesday, hours after the company posted its massive revenue and user growth in the third quarter of the year.
The company says it has seen an increase in costs for advertisers who have boycotted social media.
Pinterest users growth came due to the joining of international users, as the number of monthly active users was 343 million, achieving an increase of 46% over the years.
Here’s what was in the news:
Adjusted earnings per share: 13 cents instead of the 3 cents Refinitiv predictions.
Profits: 443 million instead of 383.5 million, according to Refinitiv’s predictions.
Monthly active users: 442 million instead of the 436.38 million predicted by FaceSet.
Average profit per user: $1.03 instead of $0.90 as predicted by FaceSet.
The great development of Pinterest made it outperform its competitors in the social networking market, as the number of users in Twitter increased by 5%, and in both Facebook and Snap increased by 2% after hours of trading its shares at the new price.
The growth of Pinterest users came due to users joining it, as the number of monthly active users was 343 million, an increase of 46% over the year.
The company stated that the launch of the iOS 14 operating system also fueled the growth of the number of users, as 4 million people used Pinterest to design creative background filters.
According to Pinterest, advertiser requirements increased during the last quarter as companies and businesses adapted to the new work environment due to COVID-19 pandemic.
In addition, the company said it has noticed an increase in the expenses of advertisers who have boycotted the use of social media.
This was a reference to the campaign to boycott Facebook ads, whose slogan was “Stop the hate for profit”, where more than 1,000 advertisers stopped ads on the social network during the month of July to boycott Facebook because of its hate speech for the company and its role in misinformation.
However, Pinterest cautioned that it was unclear how long the boycott would last.
The company also announced that it expects fourth-quarter earnings to increase by 60% annually, but warned of instability due to the pandemic.