(Reuters) – Pinterest Inc (PINS.N) 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.
FILE PHOTO: A guest hold up a phone during the Pinterest Inc. IPO on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 18, 2019. REUTERS/Brendan McDermid
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, 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: tmsnrt.rs/2pwCD7X
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