Abraham Yousef · February 2023
MMM: Pinterest's Revenue Fell Short of Expectations in 4Q22
Pinterest's revenue fell short of expectations in 4Q22 due to softened advertising demand caused by macro uncertainty. However, the platform saw a return to positive user growth, with reported global monthly active users up 4% YoY and user engagement increasing YoY. Meanwhile, Robinhood's 4Q22 revenue and EPS missed expectations due to record high inflation, decreasing consumer spending, and the downturn in equity markets, with MAUs falling 30% YoY and user churn on the rise.
Key Takeaways:
Pinterest’s revenue fell short of expectations (though EPS beat), amidst softened advertising demand due to macro uncertainty
4Q22 saw a return to positive user growth with reported Global MAUs up 4% YoY (vs flat in 3Q22 and negative in the three preceding quarters); Sensor Tower MAUs increased 5% YoY
Pinterest has kept its momentum in user growth going in 2023 with Jan’23 MAUs also up 5% YoY
Pinterest’s 4Q22 user engagement increased YoY, which could provide an opportunity to further monetize these more heavy users after demand for advertising returns
Sessions per user growth outpaced active user growth per Pinterest’s earnings call and Sensor Tower data: Per ST estimates, session counts on the Pinterest mobile app increased 12% YoY in 4Q22 vs +5% MAU growth
Sensor Tower Power User Curve data indicates an increase in Pinterest user stickiness as nearly 22% of Pinterest users opened the app +15 days/month in 4Q22, up from 20% in 4Q21 and 18% in 4Q20
Robinhood’s 4Q22 reported revenue and EPS missed expectations, pressured by record high inflation, decreasing consumer spending, the downturn in equity markets, and the beginning of crypto winter
Per ST estimates, Robinhood MAUs fell 30% YoY (-7% QoQ) vs Reported MAU growth of -34% YoY (-7% QoQ) in 4Q22
User churn on Robinhood has been on the rise over the past two years: Per Sensor Tower Churn Analysis data, the average user churn rate on Robinhood in Dec’22 was 24% vs 17% in Dec’21 and 14% in Dec’20
For more information, request the full report from reports@sensortower.com.
