Pinterest shares took a hit in extended trading on Thursday following a weaker-than-expected forecast and disappointing revenue report. The company’s revenue of $981 million missed the expected $991 million, while its adjusted earnings of 53 cents per share beat the estimated 51 cents per share. Despite a 12% rise in revenue from the previous year, Pinterest’s net income stood at $201 million, or 29 cents per share, compared to $17.49 million, or 3 cents per share, in the previous year.

The platform’s monthly active users in the fourth quarter increased by 11% to 498 million, surpassing analyst estimates of 487 million. However, the global average revenue per user fell short of expectations at $2, lower than the projected $2.05. Pinterest’s first-quarter revenue forecast of $690 million to $705 million reflects a year-over-year growth of 15% to 17%, below the average analyst estimate of $703 million.

Following the earnings report, Pinterest’s stock initially plummeted by as much as 28% to an after-hours low of $29.40. However, the announcement of a new Google partnership during a call with analysts led to a rebound, with the stock settling at a nearly 8% decline at $37.82. Pinterest CEO Bill Ready highlighted the potential of the Google partnership to improve monetization in international markets, citing the company’s under-monetization, particularly outside the U.S., where 80% of its users contribute to only 20% of its revenue.

Pinterest’s report comes amidst a rebound in the digital advertising market, with Meta, Alphabet, and Amazon all demonstrating double-digit growth in their ad businesses. However, Snap is not experiencing the same level of expansion. The announcement of the company’s weaker-than-expected forecast and revenue miss has raised concerns about its future performance and ability to compete in the increasingly competitive digital advertising landscape.