Pinterest falls short of quarterly revenue estimates, forecast disappoints

 Pinterest falls short of quarterly revenue estimates, forecast disappoints

(Reuters) - Pinterest Inc on Thursday missed Wall Street estimates for third-quarter revenue as it earned lower-than-expected average revenue per user, and forecast full-year sales marginally below expectations.

Shares of the online scrapbook company, which have risen about 36% from its initial public offering price in April, dipped more than 18% to $20.40 in extended trading.

Pinterest, on average, earned revenue of 90 cents per user globally in the quarter. Analysts were expecting 91 cents, according to research firm FactSet.

Net loss widened to $124.7 million (£96.41 million), in the third quarter ended Sept. 30, from $18.9 million, a year earlier. Total costs and expenses nearly doubled to $413.4 million.

The company expects 2019 total revenue between $1.10 billion and $1.115 billion, compared to its prior forecast of $1.095 billion and $1.115 billion. Analysts were expecting $1.12 billion, according to IBES data from Refinitiv.

Pinterest, which calls its users "Pinners", said monthly active users jumped 28% to 322 million. Analysts were expecting about 307 million users.

Interactive graphic on Pinterest users:

Pinterest generates revenue by placing advertisements among pins or posts, basically ideas for clothes, décor and recipe, uploaded on the site by users.

Total revenue rose about 47% to $279.7 million, but fell short of analysts' estimates of $280.6 million, according to IBES data from Refinitiv.

Excluding certain items, the company earned a cent per share. Analysts were expecting a loss of 4 cents.

(Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber)

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Updated Date: Nov 01, 2019 03:07:35 IST