• Forecasts for popular photo-sharing app Pinterest have shown revenue below expectations for Q3 after a sharp rise of 21% for just ended Q2.
  •  Estimates fall short of previously projected $908 million, resulting in a 14% nosedive in the company’s stock in after-hours trade.
  • Despite an increase in MAUs, sales are still heavily dependent on the North American and Canadian Market, with an average revenue of $6.85 per user, compared to 13 cents per user in the rest of the world.

Forecasts for popular photo-sharing app Pinterest have shown revenue below expectations for Q3 after a sharp rise of 21% for the just ended Q2.

Estimates for the starting quarter fall short of the previously projected $908 million, resulting in a 14% nosedive in the company’s stock in after-hours trade.

The app, which has over 1 billion downloads on Play Store and millions more on the App Store, recorded a 12% increase in Global Monthly Active Users (MAUs) for the just-ended quarter.

CEO of Pinterest, Bill Ready, in a statement, said that the company’s monetization efforts were paying off.

“Advertisers are seeing improved performance across key objectives on Pinterest—from brand awareness to conversion—as we roll out AI-powered products and experiences. As a result, we are gaining share of advertising budgets with some of the world’s largest brands. I am proud of our pace of innovation as we execute against the opportunity ahead,” he said.

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The company’s Q2 results beat analyst expectations of $849 Million by recording sales of $854 Million with an adjusted earning of 29 cents per share of the projected 28.

Despite an increase in MAUs, the company’s sales are still heavily dependent on the North American and Canadian Market, with an average revenue of $6.85 per user, compared to 13 cents per user in the rest of the world.

The app faces tough competition from Meta apps and TikTok in the advertising market as it rolls out ads to users in the international market through a partnership with Google’s parent company, Alphabet(GOOGL).