Analyst Note
| Ali Mogharabi |While Pinterest’s third-quarter top and bottom lines beat the FactSet consensus estimates, the decline in U.S. users is concerning in our view. However, we were pleased with the firm’s ability to increase user monetization by attracting more advertisers. We expect higher user growth in 2022 and beyond as the impact of the pandemic, which pulled user growth forward, will be lapped. We also expect the firm’s latest offerings that attract content creators and improve users’ shopping and purchasing experiences on the platform to drive user growth. In addition, we think some advertisers will come back after macro issues related to supply chain and labor shortage are resolved. Plus, as expected, Apple’s policies appear to have hit Pinterest less than some of its peers.