Pinterest Stock Tumbles Despite Q2 Earnings Beat as Revenue Outlook Falls Short

Pinterest tumbles as guidance overshadows earnings beat By Proactive Investors

Proactive Investors - Pinterest Inc (NYSE:PINS) shares have tumbled by more than 11% ahead of the open as it warned that earnings could be under pressure in the following months. The social media platform saw its second-quarter earnings beat guidance, but investors appear to have focused more on the lower guidance. Looking at the third quarter, the company said it expects sales to be between US$885 million and US$900 million, down compared to Wall Street guidance of US$907 million. Despite the weak outlook, second-quarter sales lifted 21% annually to US$854 million, ahead of analyst estimates of US848 million. Earnings per share reached US$0.29, beating the expected US$0.28. "Our monetization efforts are paying off," Pinterest CEO Bill Ready said. "Advertisers are seeing improved performance across key objectives on Pinterest -- from brand awareness to conversion -- as we continue to roll out AI powered products and experiences. "As a result, we're gaining share of advertising budgets with some of the world's largest brands." Monthly active users during the second quarter hit 522 million, beating estimates which predicted 520.1 million.

Pinterest slips 15% as revenue outlook falls short despite earnings beat (NYSE:PINS)

Pinterest stock (NYSE:PINS) slid 15% in the immediate wake of its second-quarter earnings report, where it topped revenue and profit expectations but disappointed with its third-quarter guidance. Revenues of $853.7M rose 21% and beat analyst expectations for $848.1M, and user growth also topped Street views: Global monthly active users rose 12% year-over-year to 522M, better than a consensus view compiled by Bloomberg for 518.04M. Non-GAAP net income, meanwhile, jumped by 46% to $207.2M. (Net income as reported swung from a year-ago loss of $34.94M to a gain of $8.9M.) But for Q3, the company forecast 16%-18% growth, to $885M-$900M, vs. analyst expectations for $909.5M. In further guidance, the company forecast adjusted operating expenses to rise 17%-20% to $485M-$500M (not including cost of revenue). "Our monetization efforts are paying off," CEO Bill Ready said. "Advertisers are seeing improved performance across key objectives on Pinterest - from brand awareness to conversion - as we continue to roll out AI-powered products and experiences. As a result, we're gaining share of advertising budgets with some of the world's largest brands." Revenue by segment: U.S. and Canada, $673M (up 19%); Europe, $143M (up 25%); Rest of World, $38M (up 32%). MAUs by segment: U.S. and Canada, 98M (up 3%); Europe, 136M (up 9%); Rest of World, 288M (up 17%). Average revenue per user rose 8% on a global basis, to $1.64 from a previous $1.53. By geography: ARPU in U.S./Canada, $6.85 (up 16%); Europe, $1.03 (up 14%); Rest of World, $0.13 (up 13%). Conference call to come at 4:30 p.m. ET. More on Pinterest Pinterest: A GARP Story Worth Buying Pinterest: Growth Will Continue Driving Shareholder Returns Pinterest: The Stock Will Fly Higher With AI And Shopping Tailwinds Pinterest Non-GAAP EPS of $0.29 beats by $0.01, revenue of $853.68M beats by $5.55M Eyes on Pinterest's guidance during Q2 results

Pinterest shares tumble on weak guidance

Bill Ready, CEO of Pinterest, rings the opening bell at New York Stock Exchange (NYSE) in New York City, U.S., May 15, 2024. Pinterest shares sank about 15% when the company reported its second-quarter earnings on Tuesday and provided third-quarter guidance that was lower than analyst estimates. Here's how the company performed, according to LSEG: The company's sales jumped 21% year-over-year in the second quarter, while its GAAP net income was $9 million. During the second quarter of 2023, Pinterest recorded a net loss of $35 million during the same period when its total costs and expenses were $781 million. Pinterest said that it expects its third-quarter sales to range from $885 million to $900 million, which equates to about 16-18% growth year over year. Analysts were projecting Pinterest's third-quarter revenue guidance to be about $907 million. "Our monetization efforts are paying off," Pinterest CEO Bill Ready said in a statement. "Advertisers are seeing improved performance across key objectives on Pinterest - from brand awareness to conversion - as we continue to roll out AI powered products and experiences. As a result, we're gaining share of advertising budgets with some of the world's largest brands." Pinterest said that it had 522 million global monthly active users (MAU) for the second quarter, topping analyst estimates of 520.1 million. Regarding the regional breakdown of Pinterest's global MAU, the company said that the U.S./Canada had 98 million, Europe had 136 million and the rest of the world totaled 288 million. Analysts were expecting Pinterest to report 98.4 million for U.S./Canada, 136.8 million for Europe and 284.6 million for the rest of the world, as part of the regional breakdown of the company's global MAU for the second quarter. Additionally, Pinterest reported second-quarter global average revenue per user (ARPU) of $1.64, in line with analyst estimates. As for the regional breakdown of Pinterest's global ARPU, the company said it was $6.85 for the U.S./Canada, $1.03 for Europe and 13 cents for the rest of the world, compared to analyst expectations of $6.88, $1.01 and 13 cents, respectfully. Last week, Alphabet reported second-quarter revenue of $84.74 billion, which topped analyst estimates. However, the company's YouTube advertising sales were $8.66 billion during that period, coming in lower than analyst estimates of $8.93 billion.

Pinterest Non-GAAP EPS of $0.29 beats by $0.01, revenue of $853.68M beats by $5.55M

Pinterest press release (NYSE:PINS): Q2 Non-GAAP EPS of $0.29 beats by $0.01. Revenue of $853.68M (+20.5% Y/Y) beats by $5.55M. Global Monthly Active Users increased 12% year over year to 522 million. GAAP net income was $9 million for Q2. Adjusted EBITDA was $180 million for Q2. Guidance: For Q3 2024, we expect revenue to be in the range of $885 million to $900 million vs. consensus of $909.45M, representing 16-18% growth year over year. We expect Q3 2024 Non-GAAP operating expenses* to be in the range of $485 million to $500 million, representing 17-20% growth year over year. Shares -19.65%. More on Pinterest Pinterest: A GARP Story Worth Buying Pinterest: Growth Will Continue Driving Shareholder Returns Pinterest: The Stock Will Fly Higher With AI And Shopping Tailwinds Eyes on Pinterest's guidance during Q2 results Pinterest reportedly to tie up with news publishers to sell ads

Pinterest Announces Second Quarter 2024 Results, Drives Robust Revenue and User Growth Momentum

Pinterest, Inc. (NYSE: PINS) today announced financial results for the quarter ended June 30, 2024. "We had another impressive quarter, reporting a 21% increase in revenue and 12% growth in monthly active users globally," said Bill Ready, CEO of Pinterest. "Our monetization efforts are paying off. Advertisers are seeing improved performance across key objectives on Pinterest - from brand awareness to conversion - as we continue to roll out AI-powered products and experiences. As a result, we're gaining share of advertising budgets with some of the world's largest brands. I'm proud of our pace of innovation as we execute against the opportunity ahead." Q2 2024 Financial Highlights The following table summarizes our consolidated financial results (in thousands, except percentages, unaudited): Q2 2024 Other Highlights The following table sets forth our revenue, MAUs and average revenue per user ("ARPU") based on the geographic location of our users (in millions, except ARPU and percentages, unaudited): Guidance For Q3 2024, we expect revenue to be in the range of $885 million to $900 million, representing 16-18% growth year over year. We expect Q3 2024 Non-GAAP operating expenses* to be in the range of $485 million to $500 million, representing 17-20% growth year over year. Please note that our operating expense guidance does not include cost of revenue. We intend to provide further details on our outlook during the conference call. Webcast and conference call information A live audio webcast of our second quarter 2024 earnings release call will be available at investor.pinterestinc.com. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures and slide presentation are also available. A recording of the webcast will be available at investor.pinterestinc.com for 90 days. We have used, and intend to continue to use, our investor relations website at investor.pinterestinc.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD. Forward-looking statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often characterized by the use of words such as "believes," "estimates," "expects," "projects," "may," "will," "can," "intends," "plans," "targets," "forecasts," "anticipates," or and similar expressions, or by discussions of strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from historical results or any future results, performance or achievements expressed, suggested or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, statements about: general economic uncertainty in global markets and a worsening of global economic conditions or low levels of economic growth, including inflation, stress in the banking industry, foreign exchange fluctuations and supply-chain issues; the effect of general economic and political conditions; our financial performance, including revenue, cost and expenses and cash flows; our ability to attract, retain and recover users and maintain and grow their level of engagement; our ability to provide content that is useful and relevant to users' personal taste and interests; our ability to develop successful new products or improve existing ones; our ability to maintain and enhance our brand and reputation; potential harm caused by compromises in security, including our cybersecurity protections and resources and costs required to prevent, detect and remediate potential security breaches; potential harm caused by changes in online application stores or internet search engines' methodologies, particularly search engine optimization methodologies and policies; discontinuation, disruptions or outages in third-party single sign-on access; our ability to compete effectively in our industry; our ability to scale our business, including our monetization efforts; our ability to attract and retain advertisers and scale our revenue model; our ability to attract and retain creators and publishers that create relevant and engaging content; our ability to develop effective products and tools for advertisers, including measurement tools; our ability to expand and monetize our platform internationally; our ability to effectively manage the growth of our business; our ability to continue to use and develop artificial intelligence ("AI") as well as managing the challenges and risks posed by AI; our ability to successfully manage our flexible work model with a more distributed workforce; our lack of operating history and ability to sustain profitability; decisions that reduce short-term revenue or profitability or do not produce the long-term benefits we expect; fluctuations in our operating results; our ability to raise additional capital on favorable terms or at all; our ability to realize anticipated benefits from mergers and acquisitions, joint ventures, strategic partnerships and other investments; our ability to protect our intellectual property; our ability to receive, process, store, use and share data, and compliance with laws and regulations related to data privacy and content; current or potential litigation and regulatory actions involving us; our ability to comply with modified or new laws and regulations applying to our business, and potential harm to our business as a result of those laws and regulations; real or perceived inaccuracies in metrics related to our business; disruption of, degradation in or interference with our use of Amazon Web Services and our infrastructure; and our ability to attract and retain personnel. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, which is available on our investor relations website at investor.pinterestinc.com and on the SEC website at www.sec.gov. All information provided in this release and in the earnings materials is as of July 30, 2024. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law. About non-GAAP financial measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative), non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share and constant currency revenue growth rates. The presentation of these financial measures is not intended to be considered in isolation, as a substitute for or superior to the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparative purposes. We compensate for these limitations by providing specific information regarding GAAP amounts excluded from these non-GAAP financial measures. We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, interest income (expense), net, other income (expense), net, benefit from income taxes and restructuring charges. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue. Non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative) and non-GAAP net income exclude amortization of acquired intangible assets, share-based compensation expense and restructuring charges. Non-GAAP income from operations is calculated by subtracting non-GAAP costs and expenses from revenue. Non-GAAP net income per share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding. We use these measures to evaluate our operating results and for financial and operational decision-making purposes. We believe these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses they exclude. We also believe these measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We present these non-GAAP measures to assist potential investors in seeing our operating results through the eyes of management and because we believe these measures provide an additional tool for investors to use in comparing our operating results over multiple periods with other companies in our industry. There are a number of limitations related to the use of non-GAAP financial measures rather than the nearest GAAP equivalents. For example, Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets and amortization of acquired intangible assets, although these assets may have to be replaced in the future, and share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense and an important part of our compensation strategy. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the tables under " -- Reconciliation of GAAP to non-GAAP financial results" included at the end of this release. Limitation of key metrics and other data The numbers for our key metrics, which include our MAUs and ARPU, are calculated using internal company data based on the activity of user accounts. We define a MAU as an authenticated Pinterest user who visits our website, opens our mobile application or interacts with Pinterest through one of our browser or site extensions, such as the Save button, at least once during the 30-day period ending on the date of measurement. The number of MAUs do not include Shuffles users unless they would otherwise qualify as MAUs. Unless otherwise indicated, we present MAUs based on the number of MAUs measured on the last day of the current period. We measure monetization of our platform through our ARPU metric. We define ARPU as our total revenue in a given geography during a period divided by the average of the number of MAUs in that geography during the period. We calculate average MAUs based on the average of the number of MAUs measured on the last day of the current period and the last day prior to the beginning of the current period. We calculate ARPU by geography based on our estimate of the geography in which revenue-generating activities occur. We use these metrics to assess the growth and health of the overall business and believe that MAUs and ARPU best reflect our ability to attract, retain, engage and monetize our users, and thereby drive revenue. While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring usage of our products across large online and mobile populations around the world. In addition, we are continually seeking to improve our estimates of our user base, and such estimates may change due to improvements or changes in technology or our methodology.

Pinterest in charts: Global monthly active users reach 522M, U.S. & Canada ARPU rises 16%

More on Pinterest Pinterest: A GARP Story Worth Buying Pinterest: Growth Will Continue Driving Shareholder Returns Pinterest: The Stock Will Fly Higher With AI And Shopping Tailwinds Eyes on Pinterest's guidance during Q2 results Pinterest reportedly to tie up with news publishers to sell ads