Pinterest shares drop 19% after disappointing Q3
Pinterest saw its shares fall 19 per cent on Thursday after its third quarter revenue came in lower than Wall Street estimates.
The online scrapbook platform reported lower-than-expected average revenue per user for its third quarter, with its revised full year sales forecast also coming in marginally below expectations.
The after-market dip is expected to wipe out the majority of Pinterest’s gains on the stock market since its initial public offering in April.
Pinterest posted an average 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 million.
Reporting back on its third quarter to September 30, Pinterest said monthly active users jumped 28 per cent to 322 million. Analysts had expected about 307 million users.
Total revenue rose around 47 per cent to $279.7 million in the quarter, but fell short of analysts’ estimates of $280.6 million, according to IBES data from Refinitiv.
Pinterest creates revenue by interspersing advertisements between its user’s pins.
The social media platform said it 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. According to IBES data from Refinitiv, analysts were expecting $1.12 billion.