2023-04-28 12:52:27 ET
Shares of image-browsing platform Pinterest (NYSE: PINS) were punished on Friday after the company reported financial results for the first quarter of 2023. At 11:45 a.m. ET, Pinterest stock was down 18%.
In Q1, Pinterest had 463 million monthly active users (MAUs), the second-highest number that the company has ever seen during a quarter -- only the first quarter of 2021 was better. With 463 million, the company's MAUs were up 7% year over year, leading to 5% revenue growth.
Pinterest generates revenue from ads. And with users growing faster than revenue, it's obvious that ad rates were down for the company in Q1, as they were for other advertising technology companies . However, in Pinterest's case, it continues spending money to invest in its technology. And with ad rates falling, it's getting less profitable, which is upsetting the market as well today.
For further details see:
Why Pinterest Stock Was Punished Today