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Pinterest (PINS) released second-quarter results Thursday evening that significantly exceeded estimates but fell short of user growth expectations. The Pinterest stock has plunged.
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The social media company reported adjusted earnings of 25 cents per share on revenue of $ 613 million. Analysts expected Pinterest to report a profit of 13 cents a share on revenue of $ 562.2 million.
Pinterest shares fell 18.5%, to nearly 58.70, during after-hours trading in the stock market today.
The company expects a turnover will increase in the low 40% year-over-year range in the third quarter. That’s about half of the revenue growth recorded in the previous two quarters.
Pinterest ended the quarter with 454 million monthly active users, below expectations of 482 million. In addition, he said, aSince July 27, monthly active users in the United States and international users have declined by about 7% and 5% year-over-year.
Pinterest Stock: Uncertainties over Covid-19
The company has not provided estimates for monthly active users for its third quarter due to the unknown impact of the Covid-19 variants.
“The course of the Covid-19 pandemic and the associated restrictions remain unknown,” Chief Executive Officer Ben Silbermann said in written remarks with the publication of the results.
“Our second quarter results reflect both the strength of our business and the recent change in consumer behavior that we have seen as people are spending less time at home,” he said. “We continue to navigate uncertainty given the ongoing Covid-19 pandemic and other factors.”
The company held its initial public offering in April 2019 which valued PINS stock at 19, raising $ 1.4 billion with a valuation above $ 12 billion.
Before the earnings report, Pinterest stock was up 9% this year.
Please follow Brian Deagon on Twitter at @IBD_BDeagon to learn more about tech stocks, analysis and financial markets.
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