Pinterest Shares Plunge After Missing Revenue Estimates

Shares of recently public social media company Pinterest (PINS)  plummeted after the company missed revenue estimates. The company did, however, post a narrower net loss than expected,  and improved guidance marginally.

The stock was down 17.58% to $20.72 a share in postmarket trading, after having fallen 3.12% in regular hours.

Earnings per share came in at an adjusted 1 cent, better than Wall Street’s expected loss of 4 cents. Adjusted loss per share in Q3 2018 was 12 cents. Revenue was $280 million, missing analysts estimates of $281 million and growing 47% year-over-year. U.S. revenue was $251 million, missing estimates of $252 million. International revenue grew 212% to $28 million versus estimates of $24 million.

Monthly active users grew 28% and totaled to 322 million, above forecasts of 311.83 million. Average revenue per user was 90 cents, missing estimates of 91 cents.

“In Q3, we redesigned Pinterest to make the service more intuitive and improved recommendations quality to help people discover new ideas they didn’t know about before,” said CEO and Co-Founder Ben Silbermann. “We are also expanding the number of shoppable products on Pinterest, which makes it easy for our users to go from inspiration to action.”

Management raised full year 2019 revenue guidance a touch. The company forecasts revenue of between $1.1 billion and $1.115 billion. Initially, the lower end of that forecast was $1.095 billion. Analysts are looking for revenue of $1.119 billion. the company improved its EBITDA guidance to a range between negative $30 million and $10 million, better than the initial forecast of between $50 million and $25 million. analysts are looking for an EBITDA loss of $32 million.

The stock had been up 3% since the end of its first trading day this summer.

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