Pinterest’s user growth slows

A slowdown in Pinterest Inc’s user growth tarnished an otherwise strong quarterly report card, sending shares down about 10% aftermarket on Tuesday even though the company forecast current-quarter revenue above estimates.

With pandemic restrictions easing across the world, people are dialing down time spent on social media, but a boom in ad spending by companies helped soften the hit from tepid user growth.

“Starting in mid-March, the easing of pandemic restrictions slowed U.S. MAU growth and lowered engagement year-over-year as people spent less time online,” Pinterest said.

Besides the slowdown in user growth, Pinterest reported better-than-expected numbers in its reported quarter.