Pinterest forecasts 2019 revenue in line with estimates, shares fall
(Reuters) – Pinterest Inc forecast full-year revenue mostly in line with analystsÔÇÖ estimates even after reporting a 54% jump in sales in its first quarterly earnings since going public, as the online scrapbook company added more users globally.
Shares of the company fell 19% in extended trading. They had risen 62% since PinterestÔÇÖs initial public offering last month.
The company expects full-year revenue between $1.055 billion and $1.08 billion, the mid point of which is slightly above analystsÔÇÖ estimate of $1.06 billion.
DA Davidson analyst Tom Forte said the PinterestÔÇÖs full-year sales outlook was a disappointment, especially given the high expectations reflected in the run up in shares.
The company, which calls its users ÔÇ£pinnersÔÇØ, added 291 million monthly active users globally in the quarter, above estimates of 289.3 million, according to IBES data from Refinitiv.
Average revenue per user rose 26% to 73 cents, the company said.
Net loss narrowed to $41.4 million in the first quarter ended March 31 from $52.7 million a year earlier.
Excluding certain items, the company lost 32 cents per share, above estimates of 11 cents.
Total revenue rose about 54% to $201.9 million, beating estimates of $200.6 million.
Reporting by Vibhuti Sharma and Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli