Pinterest Shares Fall Steeply by 15% after Release of Company’s First Earnings Report

Pinterest released its first earnings report as a public company. For Q1 2019, it announced a loss of 32 cents per share, excluding certain items.

As a public company, Pinterest, an American social media web and mobile application company, has released its first quarterly earnings report. The company saw its shares falling approximately 19% when it reported its first quarter 2019 earnings and revenue. However, the drop in shares settled to a plunge of nearly 15% after hours due to a slight rebound. This is expected to bring the company’s market capitalization to close to $14 Bn after suffering a reduction of almost $2.5 Bn. For the first quarter, the company reported $201.9 Mn in revenue, which just beats the analysts’ expectation of $200.6 Mn.

However, Pinterest took a massive loss of 32 cents per share, excluding certain items, in the first quarter 2019 compared to that of 11 cents per share that the analysts had expected. According to its report, the company gained a 22% increase in its global monthly active users (MAUs) compared to the year-ago quarter. This helped the company to increase its global MAU count to 291 Mn in the first quarter from 239 Mn reached a year ago. Global average revenue per user (ARPU) increased 26% from the year-ago quarter, up 73 cents.

Revenue and MAU growth was higher in international markets compared to the US

In comparison to the US market, most of Pinterest’s growth was seen in international markets in the first quarter of 2019. US revenue reached $187 Mn in the first quarter, rising from $124 Mn earned in the year-ago quarter. This marks a revenue increase of 51% in the US market. On the other hand, revenue in international markets touched $15 Mn in the first quarter, increasing from $7 Mn collected a year ago. This shows a rise of 114% in revenue internationally.

Pinterest also provided guidance for its revenue for the full-year 2019. It expects to earn between $1.06 Bn to $1.08 Bn in revenue during the entire year. Analysts had expected a middle ground of that forecast, i.e. $1.07 Bn. Nevertheless, if achieved, it would be the first time that the company reports revenue of a minimum of $1 Bn in a year.

International MAUs grew 29% in the first quarter 2019 compared to the same quarter of the previous year, whereas US MAUs increased only 6%. In the past quarter, Pinterest tapped into six new markets, which helped the company to spread its presence to around 13 countries. Currently, it is concentrating on its expansion in Europe, said a high-ranking company official.