Pinterest quarterly revenue, forecast disappoint; shares
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[November 01, 2019] By
(Reuters) - Pinterest Inc <PINS.N> fell
short of Wall Street estimates for quarterly revenue on
lower-than-expected average revenue per user and its revised full-year
sales forecast came marginally below expectations, sending its shares
Thursday's after-market plunge is expected to wipe out a majority of the
gains since the online scrapbook company's blockbuster initial public
offering in April, leaving the stock just about 6% from its IPO price.
Pinterest on average posted revenue of 90 cents per user globally in the
third quarter, falling just short of analysts expectation of 91 cents,
according to research firm FactSet.
The company's net loss widened to $124.7 million from $18.9 million a
year earlier, as total costs and expenses nearly doubled to $413.4
Pinterest has been investing in areas such as advertiser diversification
which would "bear fruit over the coming several quarters and years,"
Chief Financial Officer Todd Morgenfeld said on a post earnings call
"We're still in the early days of that, and it will unfold over a period
Pinterest, which calls its users "Pinners", said monthly active users
jumped 28% to 322 million. Analysts had expected about 307 million
Interactive graphic on Pinterest users: https://tmsnrt.rs/2pwCD7X
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A guest hold up a phone during the Pinterest Inc. IPO on the floor
of the New York Stock Exchange (NYSE) in New York, U.S., April 18,
2019. REUTERS/Brendan McDermid
Total revenue rose about 47% to $279.7 million in the quarter ended Sept. 30,
but fell short of analysts' estimates of $280.6 million, according to IBES data
The company generates revenue by placing advertisements among pins or posts,
basically ideas for clothes, décor and recipe, uploaded on the site by users.
Excluding certain items, the company earned a cent per share. Analysts were
expecting a loss of 4 cents.
Pinterest expects 2019 total revenue to be between $1.10 billion and $1.115
billion, compared to its prior forecast of $1.095 billion and $1.115 billion.
Analysts were expecting $1.12 billion, according to IBES data from Refinitiv.
Pinterest was one of the most high-profile social media companies to list in the
United States since Snap Inc <SNAP.N> in 2017.
(Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber)
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