(Reuters) -Pinterest ( PINS ) forecast current-quarter revenue below Wall Street expectations on Tuesday, hurt by tough competition from larger social media platforms in a stabilizing digital advertising market.

Its shares dropped 20.7% in extended trading.

The image-sharing platform competes with the likes of TikTok and Meta Platforms-owned Facebook and Instagram - the preferred platforms for advertisers because of their larger user base and higher engagement for targeted ads.

Advertisers have also cut their marketing budgets in response to an uncertain economy, while consumers focus their spending on essentials.

The company expects revenue in the range of $885 million to $900 million for the third quarter, compared with analysts' expectations of $906.6 million, according to LSEG data.

Revenue for the second quarter ended June 30 rose 21% to $853.7 million, higher than estimates of $847.8 million.

Pinterest's ( PINS ) global monthly active users (MAUs) rose by 12% to 522 million in the second quarter, compared with estimates of 519.2 million.

Excluding items, Pinterest ( PINS ) posted a profit of 29 cents per share, compared with 21 cents a year ago.

(Reporting by Juby Babu in Mexico City; Editing by Devika Syamnath)