Pinterest, the once hugely popular “DIY” application, suffered its second-lowest drop within the stock market this week.
Shares closed at 18.2% this past Friday. In a letter to shareholders, the app reported over 24 million users left the platform between the first and second quarters. Pinterest had 454 million monthly active users, which was down more than 5% from 478 million users reported back in April. (RELATED: Pinterest Announces It Will Ban All Ads Promoting Weight Loss)
Use of the app spiked during the height of the pandemic, however, people are continuing to leave the once-famed recipe and idea-sharing hub. Pinterest has recently shifted from a place to share recipes and ideas to a place to meet with other creators and purchase items.
Recently, the company launched video-first pins, allowing creators to show off some of their favorite things. This week, Pinterest introduced additional new features that allow creators to earn income for those saved pins. It remains to be seen what else Pinterest has to do in order to gain users and keep its name alive in a growing tech atmosphere.
The company says declining user numbers are a result of a “disproportionate” increase in users during COVID-19 lockdowns last year. Models had predicted that Pinterest would lose some users, just not at this speed.
Though Pinterest is reporting fewer monthly active users, the company reported quarterly revenue of $613 million, which is up more than 125% year-over-year. In addition, Pinterest reported a net income of $69.4 million, up from a net loss of more than $100.7 million in the year-ago quarter.