Pinterest Guides for Flat U.S. User Growth

Pinterest topped estimates after the bell Tuesday, but offered cautionary comments on U.S. growth as the economy reopens.
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Pinterest said it expects monthly average users in the U.S. to be flat in the second quarter as the economic reopening continues.

The comments, in a statement of financial results for the first quarter, offset an otherwise better than expected report. 

The San Francisco company reported a loss of 3 cents a share compared with a loss of 25 cents a share in the year-earlier quarter. The latest adjusted earnings were 11 cents a share.

Revenue reached $485.2 million from $271.9 million. 

A survey of analysts by FactSet produced consensus estimates of a GAAP loss of 6 cents a share, or an adjusted profit of 6 cents a share, on revenue of $471.7 million.

However, the company said in the second quarter it expects U.S. monthly average users "to be around flat on a year-over-year percentage basis."

In the just completed quarter, MAUs rose 30% to 478 million worldwide. That was 0.4% shy of the analyst consensus for MAUs: 480.1 million.

At last check Pinterest shares were trading down 10.3% at $69.60. They closed the regular Tuesday trading session up 1% at $77.49.

Microsoft Has 'Financial Firepower' to Buy Pinterest, Analysts Say

The stock has taken investors on a roller-coaster ride, climbing from the high $60s at the start of the year, peaking at a 52-week high near $90 in mid-February and then dropping into the low $60s three weeks later.

Pinterest sees second-quarter revenue doubling (up 105%) from a year earlier as monthly average users rise in the mid-teens percent globally, outside of the U.S.  

Second-quarter expense growth should sharpen from Q1 “as we continue to ramp investments in our long-term initiatives and growth drivers,” Pinterest said.

Barron's reported in mid-April that a Cleveland Research note appeared to have pushed down Pinterest shares.

The publication couldn't obtain the note. But Barron's quoted Seeking Alpha as reporting that the note said Pinterest's “Q1 looks like it ended softer than mid-quarter expectations would indicate.”

At the same time, Barron's reported, Bernstein analyst Mark Shmulik said the mid-month drop in Pinterest created a buying opportunity. Shmulik's advertising checks showed some strong outlays, Barron's reported.

Pinterest Has My Interest: RealMoney's Bob Lang

In early April people familiar with the matter told The New York Times that Pinterest was in talks to buy Visual Supply, a photography app popular with teenagers.

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