Pinterest reports smaller 1Q loss but results drag stock
Pinterest, fresh off its initial public offering, posted a loss for the first three months of the year that was larger than analysts were expecting, though revenue was slightly stronger. Its revenue forecast, though, was slightly below expectations and its shares slumped in after-hours trading.
The company, which runs a digital pinboard and shopping tool, said Thursday that its net loss was $41.4 million, or 33 cents per share, in the January-March period. Its revenue grew 54% to $202 million from $131 million. The quarter's adjusted loss was 32 cents per share.
Analysts had expected a loss of 11 cents per share on revenue of $200.7 million, according to FactSet.
People use Pinterest to search for and collect, or "pin," ideas for weddings, home decor, recipes, fashion and other categories. The service had 291 million monthly active users in the first quarter, up 22% from 239 million a year earlier.
Pinterest said it expects revenue in a range of $1.055 billion to $1.08 billion for the full year, the midpoint of which is slightly below the $1.07 billion that analysts had been expecting, even though the first quarter's sales surpassed estimates.
The San Francisco-based company's shares fell $4.86, or 16 percent, to $26 in after-hours trading. The stock had closed the regular-trading day up $2.23, or 7.8 percent, at $30.86. The company went public at $19 per share in April.
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