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Pinterest (NYSE: PINS) posted mixed financial results for the first quarter on Thursday after the closing bell of its first earnings report as a public company.
The digital signage went public in April, registering a 25% rise over its first trading day on the New York Stock Exchange. Pinterest's performance in the public market continued to remain in the green, closing up about 8% Thursday to nearly $ 31 per share for a market capitalization of $ 16.7 billion.
The company, led by co-founder and general manager Ben Silbermann, reported revenues of $ 202 million on losses of $ 41.4 million for the three months ended March 31, 2019. This figure has exceeded Wall Street's revenue estimates of approximately $ 200 million and represents growth year-over-year revenue of $ 131 million from the previous year. The losses, however, were about three times higher than the estimates, at 32 cents per share.
"The IPO was an important step, but our goal at Pinterest has not changed," Silbermann said in a statement. "We want to help people discover inspiring ideas for all aspects of their lives, from fashion to interior design to travel and fitness. Our first quarter results demonstrate our success, and we are pleased to continue to expand our reach and impact in the coming years. "
In April, Pinterest sold 75 million Class A shares to an IPO that raised $ 1.4 billion, with a market capitalization of $ 12.6 billion fully diluted, a figure slightly higher than its valuation in Series H of 12.3 billion dollars. It was amid concerns that the company would see a slightly smaller valuation when it went public and would win the inappropriate title of "undercorn".
Pinterest had previously reported revenue of $ 755.9 million for the year ended December 31, 2018, up from $ 472.8 million in 2017. Losses were down to $ 62.9 million. million dollars last year, up from $ 130 million in 2017. For the 2019 fiscal year, Pinterest, which is should reach profitability by 2021, predicts revenues between $ 1.05 billion and $ 1.08 billion.
Pinterest's post-IPO performance strongly contrasts with Lyft and Uber's treatment on their respective stock exchanges. Lyft, for its part, has fallen since its IPO despite an initial increase of 21%. In its first-ever earnings report as a public company, published last week, the group posted $ 776 million in revenue in the first quarter, generating losses of $ 1.14 billion, including $ 894 million. share-based compensation and related social charges. The company's revenues exceeded Wall Street's estimates at $ 740 million, while the losses were much higher due to IPO charges.
Uber suffered a catastrophic IPO last week before continuing to fall in the days that followed. Previously, the private finance giant was valued at $ 72 billion by venture capitalists in the private market. He valued his action at $ 45 per share for a valuation of $ 82.4 billion last week. The company closed Thursday at about $ 43 per share for a market capitalization of $ 72.5 billion.
Pinterest's disruptive digital advertising business seems to be more appealing to Wall Street than just advertising. In addition to providing revenue estimates exceeding Thursday, Pinterest has posted a growth in the number of users. The company now has 291 million active users per month, an increase of 22% over the first quarter of 2018. Pinterest continues to win global users, with impressive growth of 29% over the past year. The United States, however, remains the company's largest market, where average revenue per user (ARPU) increased 41% to $ 2.25.
Skeptics have hinted that Pinterest was trustworthy. His image as a gentleman and his slow growth record would make a poor public company. Today, its market capitalization exceeded that of Lyft, which was worth billions of dollars more before the transition of the two companies on public markets.
How long can Pinterest stay in the green remains to be seen.
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