Pinterest Quarterly Results Topple Estimates But User Growth Misses
Pinterest (PINS) reported second-quarter results late Thursday that soundly beat estimates but fell short on user growth expectations. Pinterest stock plunged.
The social media company reported adjusted earnings of 25 cents a share on revenue of $613 million. Analysts expected Pinterest to report earnings of 13 cents a share on revenue of $562.2 million.
Pinterest stock plummeted 18.5%, near 58.70, during after-hours trading on the stock market today.
The company expects revenue will grow in the low-40% range year over year in the third quarter. That’s about half the revenue growth it saw in the prior two quarters.
Pinterest ended the quarter with 454 million monthly active users, below expectations of 482 million. Moreover, it said, as of July 27, U.S. monthly active users and international user have declined approximately 7% and 5% year over year.
Pinterest Stock: Uncertainties Over Covid-19
The company did not provide estimates for monthly active users for its third quarter due to the unknown impact of Covid-19 variants.
“The evolution of the Covid-19 pandemic and related restrictions remain unknown,” Chief Executive Ben Silbermann said in written remarks with the earnings release
“Our second quarter results reflect both the strength of our business and the recent shift in consumer behavior we’ve seen as people spend less time at home,” he said. “We continue to navigate uncertainty given the ongoing Covid-19 pandemic and other factors.”
The company held its initial public offering in April 2019 that priced PINS stock at 19, raising $1.4 billion with a valuation above $12 billion.
Prior to the earnings report, Pinterest stock was up 9% this year.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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