Pinterest skyrockets 37% after reporting blockbuster earnings with growth in revenue and users
- Pinterest reported quarterly earnings on Friday that exceeded Wall Street's expectations for revenue and showed solid user growth.
- Shares surged as much as 37% on Friday.
- "This quarter we reached a milestone—more than 400 million people now come to Pinterest every month to get and stay inspired," said Ben Silbermann, CEO and cofounder of Pinterest in a press release.
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Shares of Pinterest surged as much as 37% Friday after the company reported blockbuster earnings that showed strong revenue and user growth amid the coronavirus pandemic.
Here are the key numbers:
- Adjusted loss per share: 7 cents reported, versus 14 cents (expected)
- Revenue: $272 million reported, versus $250.7 million (expected)
In addition, the company reported that global monthly active users jumped to 416 million during the second quarter that ended June 30, 39% higher than a year ago. Analysts surveyed by Bloomberg had expected global MAUs of 375.3 million.
"This quarter we reached a milestone—more than 400 million people now come to Pinterest every month to get and stay inspired," said Ben Silbermann, CEO and cofounder of Pinterest in a press release. "In these tough times, we're seeing more and more people rely on Pinterest to cook at home, plan kids activities and set up a home office."
He continued: "Businesses are helping them turn their ideas into reality as people are increasingly discovering and buying products on Pinterest."
The coronavirus pandemic boosted user growth for the company, as people flocked back to the site for inspiration and entertainment amid sweeping US lockdowns through March and April to contain the spread of disease.
"People needed Pinterest in Q2," the company wrote in a letter to shareholders. "They needed a service that helped them adjust to radically changed circumstances — one that inspired them to cook at home, build vegetable gardens, plan activities for their kids and set up remote offices and home gyms, to name just a few typical COVID-19-related use cases we saw during the quarter."
The company added that people who came back to Pinterest during COVID-19 lockdowns continued to have high engagements once states began to reopen their economies. In addition, total advertiser revenue grew during the quarter, and more than half of spend was from small and medium-sized advertisers, Pinterest said.
Pinterest did not give any guidance for the full year 2020, due to uncertainty from the coronavirus pandemic. The company did estimate that revenue growth for July is about 50% higher on the year through July 29.
"We are encouraged by the performance of our business in July, but a tremendous amount of uncertainty remains given the ongoing COVID-19 pandemic and other factors," the company said. "Our current expectation is that Q3 revenue will grow in the mid-30% range year over year."
Pinterest is up more than 70% year-to-date.
