Pinterest shares jumped after the company reported strong revenue and user growth fueled by stay-at-home projects.
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Despite posting a third-quarter loss of $94.2 million, or 16 cents a share, the image-sharing company reported a 58% year-over-year revenue increase to $442.6 million compared to $280 million in 2019.
Pinterest reported a 46% year-over-year increase in its international monthly active users to 343 million compared to 235 million in 2019. Meanwhile, domestic monthly active users increased by 13% year-over-year to 98 million from 87 million a year ago.
The company cited broad-based strength driven by a recovery in advertiser demand from larger brands who paused or reduced spending in the second quarter to boycott social media as part of the #StopHateforProfit campaign. In addition, the company said the release of iOS 14 boosted user growth with approximately 4 million people using Pinterest “for inspiration for customized background filters.”
While Pinterest is forecasting fourth-quarter revenue growth of about 60% year-over-year, the company warned that it continues to "navigate uncertainty" due to the coronavirus pandemic. It also expects fourth-quarter engagement to dip as people celebrate the holidays and during both the U.S. presidential election and its aftermath.
The company noted that it will continue to operate in a remote work environment while maintaining its long-term strategic investments and will continue to evaluate its spending as the pandemic evolves.