Pinterest loses 24 million users as global lockdowns and physical stores reopen

Due to global vaccination and the reopening of physical stores, Pinterest lost 24 million active users in the past three months, with U.S. users down 5% year-on-year.

Pinterest officially stated that due to the impact of the epidemic, its user growth of 62 million last year was unexpected. In terms of the platform's long-term growth trajectory, the number of 454 million users is relatively normal.

Pinterest also emphasized the impact of the reopening of physical retail stores. It is understood that many core elements of Pinterest are closely related to the family, such as decoration, garden, cooking and DIY. The abnormalities caused by the epidemic are gradually returning to normal levels as the ban is lifted.

Despite this, Pinterest said user shopping and search engagement remained stable, and people were still discovering new brands and products through the platform and making purchases.

Although the number of platform users has decreased, Pinterest's average revenue per user has increased compared to the first quarter. Both in the United States and globally, existing active users are generating considerable revenue for Pinterest.

Pinterest has a clear development strategy, with both opportunities and challenges

As Pinterest itself said, the surge in web usage caused by the global epidemic blockade last year was an anomaly, and Pinterest needs to get everything back on track. After the epidemic subsides, the company must have a clearer and more accurate understanding of its actual growth trajectory.

It is for this reason that Pinterest has been developing its core business, providing a platform for shoppers and creating more marketing opportunities. The Pinterest app has huge development potential, and the engagement of Generation Z Pinners is very high. Its Idea Pins are also popular among young people, bringing huge traffic to it every day.

Pinterest, which posted revenue of $613 million in the second quarter, up 125% from a year earlier, said revenue was driven by interest from large U.S. retailers and travel brands, as well as tools it has introduced to target new markets.

Pinterest expects its revenue to grow by about 40% year-on-year in the third quarter. Pinterest will continue to increase its investment in long-term strategies and strive to resume its brand marketing activities in the fourth quarter.

However, the uncertainty caused by the epidemic has always existed, and the number of Pinterest users may continue to decline in the next quarter's report. But if Pinterest can continue to bring benefits to advertisers and brands and continue to improve the user experience, it is believed that existing users will still bring it revenue.

In the end, as the saying goes, development is the eternal truth.

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