Pinterest lost users in the second quarter, and the stock is plunging

Earnings

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Ben Silbermann, co-founder, chairman and CEO of Pinterest, speaks in front of the company’s logo at the New York Stock Exchange (NYSE), during the company’s IPO on April 18, 2019 in New York City.
Johannes Eisele | AFP | Getty Images

Pinterest shares fell more than 14% in after-hours trading on Thursday after the company reported its second-quarter earnings, missing once again on user growth expectations.

Here’s what it reported:

  • Adjusted earnings per share: 25 cents vs. 13 cents forecast by Refinitiv
  • Revenue: $613 million vs. $562.1 million forecast by Refinitiv
  • Monthly active users: 454 million vs. 482 million forecast by StreetAccount
  • Average revenue per user: $1.32 vs. $1.17 forecast by StreetAccount

The company reported revenue of $613 million for the quarter, which was up more than 125% compared with a year prior. Pinterest also posted a net income of $69.4 million. A year ago, the company posted a net loss of more than $100.7 million.

Pinterest also provided a Q3 revenue growth estimate “in the low-40s” on a year to year basis. That was approximately in line with Refinitiv expectations of 42.8% year-to-year revenue growth for the upcoming quarter.

However, the company declined to provide Q3 MAU guidance due to the unknown impact of Covid-19 variants.

“The evolution of the COVID-19 pandemic and related restrictions remain unknown, and we are not providing guidance on Q3 2021 MAUs given our lack of visibility into certain key drivers of engagement,” the company said in a statement.

The company also said that as of July 27, its U.S. MAUs have declined by approximately 7% while global MAUs have grown approximately 5% year-to-year.

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