Pinterest Reports Wider-Than-Expected Loss; Revenue in Line

Pinterest sees operating expenses rising at a slower pace in second quarter.
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Pinterest, Inc.  (PINS) - Get Report posted a wider-than-expected loss per share for the first quarter and said it sees operating expenses continuing to grow in the second quarter.

The company reported a non-GAAP loss of 10 cents a share on revenue of $271.9 million.

Pinterest had been expected to lose 9 cents a share, on sales of $269.5 million, based on a FactSet survey of 22 analysts.

In the same period a year ago, the company posted a loss of 32 cents a share on sales of $201.9 million.

On April 7, Pinterest guided for revenue in the range of $269 million to $272 million.

“Given the uncertainties related to the ongoing COVID-19 pandemic and the rapidly shifting macroeconomic conditions, we are not providing guidance expectations for revenue or Adjusted EBITDA for 2020,” the company said in a statement. “Our cost of revenue has generally grown with users rather than revenue, which in this environment puts some pressure on gross margins,” it added.

Global monthly active users rose 26% from a year earlier to 367 million, at the top end of previously released guidance from the company. 

"This quarter, we saw a record number of people turn to Pinterest for ideas on how to make living at home more convenient, fun, and inspiring," Ben Silbermann, CEO and co-founder of Pinterest, said in the statement. 

Pinterest said it expects operating expenses to continue to rise in the second quarter, but at a slower pace than in the first quarter.

Shares of Pinterest fell $1.95, or 9.4% to $18.86 in after-hours trading Tuesday.