UPDATE 2-Pinterest falls short of quarterly revenue estimates, forecast disappoints
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- United States
Pinterest Inc on Thursday missed Wall Street estimates for third-quarter revenue as it earned lower-than-expected average revenue per user, and forecast full-year sales marginally below expectations.
Shares of the online scrapbook company, which have risen about 36% from its initial public offering price in April, dipped more than 18% to $20.40 in extended trading. Pinterest, on average, earned revenue of 90 cents per user globally in the quarter. Analysts were expecting 91 cents, according to research firm FactSet.
Net loss widened to $124.7 million, in the third quarter ended Sept. 30, from $18.9 million, a year earlier. Total costs and expenses nearly doubled to $413.4 million. The company expects 2019 total revenue 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, which calls its users "Pinners", said monthly active users jumped 28% to 322 million. Analysts were expecting about 307 million users.
Pinterest generates revenue by placing advertisements among pins or posts, basically ideas for clothes, décor and recipe, uploaded on the site by users. Total revenue rose about 47% to $279.7 million, but fell short of analysts' estimates of $280.6 million, according to IBES data from Refinitiv.
Excluding certain items, the company earned a cent per share. Analysts were expecting a loss of 4 cents.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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