(Reuters) -Pinterest Inc forecast second-quarter revenue growth below Wall Street estimates on Thursday, as the image-sharing platform grapples with a pullback in advertising spending, sending its shares down 9% in trading after the bell.
Smaller digital ad sellers such as Pinterest and Snap Inc are losing ground in a weak economy to big tech rivals Alphabet and Meta Platforms as advertisers stick with tried and tested platforms.
This follows strong pandemic era sales when advertisers spent heavily to reach customers online.
Shares of peer Snap fell about 18% in aftermarket trading after the company missed revenue expectations for the first quarter and warned it could miss estimates for the second as well.
The image-sharing platform’s global monthly active users (MAUs) grew by 7% to 463 million, above estimates of 454.03 million, according to Refintiv data.
The company’s revenue rose 5% to $602.58 million in the first quarter ended March 31. Analysts on average had expected $592.99 million, according to Refinitiv data.
Pinterest said it expected revenue growth in the current quarter to be in line with revenue growth in the first quarter and the fourth quarter of 2022. Fourth quarter revenue grew 4%. Wall Street was estimating growth of 6.15%, according to Refinitiv data.
(Reporting by Vansh Agarwal in Bengaluru; Editing by Shailesh Kuber)
