Pinterest shares plunge after reporting 125% rise in revenue but continued pandemic worries

Pinterest shares sank about 14% after hours Thursday after the company reported mixed second-quarter results and said it could not provide third-quarter guidance because of continued uncertainty about the coronavirus pandemic.

The online-pinboard company reported a 125% increase in revenue and said its global monthly active users rose 9%. But it saw a 7% decline in U.S. users.

“Our second-quarter results reflect both the strength of our business and the recent shift in consumer behavior we’ve seen as people spend less time at home,” said Ben Silbermann, chief executive and co-founder of Pinterest, in a statement. 

reported net income of $69.4 million, or 10 cents a share, compared with a loss of $100.7 million, or 17 cents a share, in the year-ago period. Adjusted for stock-based compensation and other costs, earnings were 25 cents a share. Revenue soared to $613.2 million from $272.5 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of 13 cents a share on revenue of $562 million.

Pinterest stock has risen about 10% year to date and soared about 190% in the past year, while the S&P 500 Index
has seen a nearly 18% increase so far this year and climbed 36% in the past 52 weeks. The company’s shares had fallen more than 6% in the regular session to close at $72.04 on Thursday. 

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