That stable outlook can be attributed to its rebounding MAUs, which rose 4% in 2022, and its rising average revenues per user (ARPU) in the U.S. Pinterest's revenue rose 9% to $2.8 billion in 2022, compared to its 52% growth in 2021, while analysts expect its revenue to grow 8% in 2023. It also continued to face privacy and antitrust lawsuits from regulators worldwide. But as its core advertising business cooled off, Meta continued to pour billions of dollars into its unprofitable Reality Labs segment, which houses its virtual and augmented reality devices. Meta didn't experience a comparable growth spurt during the worst of the pandemic, so it didn't lose any MAUs across its combined family of apps in 2022. As a result, Pinterest still serves 28 million fewer MAUs than it did at its peak (of 478 million MAUs) in the first quarter of 2021. Pinterest had experienced a major growth spurt during the pandemic as new users flocked to its platform to find ideas for online shopping, recipes, DIY projects, and family activities, but those tailwinds dissipated as the lockdowns ended. TikTok also challenged Pinterest and Instagram in the nascent social shopping market with its shoppable ads.Īs those macro and competitive headwinds intensified, Pinterest and Meta faced company-specific challenges.
The more time people spent on TikTok, the less frequently they shared ideas on Pinterest or posted fresh content to Facebook and Instagram. That change made it difficult for both platforms to craft targeted ads.īoth companies also faced fierce competition from ByteDance's short video platform TikTok, which serves about 150 million MAUs in the U.S. In addition to slower ad spending, both companies were affected by Apple's iOS update in late 2021, which enabled its users to opt out of data tracking features. Pinterest and Meta both generate most of their revenue from ads, which are highly exposed to inflation, rising rates, and other macro headwinds.
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