(Reuters) – Pinterest Inc reported a bigger-than-expected first-quarter loss on Tuesday as the image sharing company incurred higher costs, sending its shares down 10% in extended trade.
FILE PHOTO: The company logo for Pinterest, Inc. with trading information is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., April 18, 2019. REUTERS/Brendan McDermid
The company had withdrawn its full-year outlook in April, citing growing uncertainty due to the impact of the pandemic on the economic environment and its effect on advertiser demand.
“Our cost of revenue has generally grown with users rather than revenue, which in this environment puts some pressure on gross margins,” Pinterest said.
The company said it saw a sharp deceleration in the middle of March as advertisers responded to changes in demand due to COVID-19.
Advertisers have pulled or cut marketing budgets to rein in costs due to the coronavirus-related uncertainty, impacting social media…
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