Pinterest’s latest earnings call for the first quarter of 2024 portrays positive results for the company including a decent increase in active users.
The content discovery platform was also able to maintain a steady rise in revenue across the board during this time period which has been a consistent finding for the company YoY.
While the app did speak about rising costs and how it’s a daily struggle to keep that at bay, the quarterly results are certainly great. Below, we’ve summarized the key findings for you.
For starters, the app’s user base grew to 518 million monthly users who were actively engaging on the app which previously was recorded to be 498 million in the last quarter.
The growth might not be major in this department but it’s there and any highlight like that for an app is going to be welcomed.
The majority of the growth appears to be arising from revenue markets working on the lower front. As can be seen in the report, Pinterest claims to have included a whopping 13 million new users from regions it calls the ‘rest of the world’. Meanwhile, growth in places like the US was beyond minimal while those present in the EU rose by 5 million during this time.
And that is seriously major news when you come to think of it. We also know more about how Pinterest makes most of its funds from the American market so it would certainly wish to see greater growth here than in other places around the globe while the second region where growth arises is the EU.
While that would be ideal, the company will not make this news with open arms as it gives rise to a plethora of chances for excelling in other places. Whatever the case may be, this growth might seem to be deceiving to some in regards to bringing in more funds.
As can be witnessed, the platform was able to bring in $470 million in the quarterly results but it was only for a small fraction of time as most of the growth arose from places external to America and Europe. This share continued to decline, QoQ.
The bright place here seems to be the EU which achieved a serious rise in revenue figures YoY as the data reflected was positive. However, such a slowdown regarding revenue growth is pivotal to mention.
The rise in the app’s costs continues to increase where both sales and marketing attain 12% YoY across the quarter. This would give rise to a fruitful potential shortly, considering these dollars are spent in the right manner.
Some experts don’t see the advertising push that the company spent so much on really bringing in fruitful income.
However, the CEO of the platform disagrees and stands by his decision, adding how the app witnessed its fastest-ever growth in both users as well as revenue since the start of 2021. And he feels most of the credit belongs to development efforts.
Pinterest is getting the returns that it feels it deserves. And what can be better than that, right? And that combined with more options in the world of advertising means there’s quite a lot of potential to explore.
The only thing that we are a little concerned about is how analysts see this projection. They might not be as excited as the platform in terms of the complete figures witnessed this quarter but at least the firm itself is celebrating its wins.
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