● Covered by 1 source · 1 reportLow impact1 negative
Pinterest shares fall 7% after sales guidance disappoints despite Q2 earnings beat
Key points
- Pinterest shares fell 7% in extended trading.
- Q2 earnings per share were 43 cents, exceeding 36 cents expected.
- Q2 revenue was $1.18 billion, above $1.15 billion expected.
- Q3 revenue guidance of $1.19 billion to $1.21 billion was in line with expectations.
Q2 Performance Exceeds Expectations
Pinterest reported second-quarter earnings per share of 43 cents, surpassing analyst estimates of 36 cents. Revenue for the quarter reached $1.18 billion, exceeding the expected $1.15 billion. Sales increased 18% year-over-year from $998.2 million.
Net Loss and User Growth
The company posted a net loss of $47 million for the period, or 8 cents per share, compared to a net income of $38.76 million (6 cents per share) in the same period last year. Global monthly active users (MAUs) grew 11% year-over-year to 640 million, exceeding estimates of 635 million. Global average revenue per user (ARPU) also surpassed projections.
Lukewarm Sales Guidance for Q3
Despite strong Q2 results, Pinterest's shares declined due to its third-quarter sales guidance. The company expects revenue between $1.19 billion and $1.21 billion, with the midpoint of $1.2 billion aligning with analyst expectations. This guidance includes a modest headwind from foreign exchange rates.
Factors Impacting Q3 Outlook
Pinterest's finance chief, Julia Donnelly, stated that the shift of Amazon's Prime Day from Q3 last year to Q2 this year contributed to a roughly half-point headwind for Q3 revenue. Additionally, a nearly one-point benefit from World Cup-related advertising spend in Q2 will not repeat in Q3, further impacting the guidance.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Pinterest's shares dropped 7% after the company provided sales guidance that was in line with analyst expectations, despite reporting better-than-expected earnings and revenue for the second quarter. The guidance was impacted by the shift of Amazon Prime Day and the end of the World Cup, which affected advertising spend.