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Pinterest Pulls Full-Year Outlook Due to Covid-19 Uncertainty; COO Leaving Company

Pinterest says ad revenue saw ‘sharp deceleration’ in mid-March.
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Pinterest  (PINS)  pulled its full-year outlook in the face of the ongoing COVID-19 pandemic and said its chief operating officer, Françoise Brougher, is leaving the company.

“Pinterest is currently not in a position to forecast the expected impact of COVID-19 on its financial and operating results for the remainder of 2020,” the company said in a statement. The company said first-quarter revenues were meeting its expectations until the middle of March, “when we began to see a sharp deceleration.”

“Our exposure to some of the most affected segments like travel, automotive, and restaurants has not been significant," Todd Morgenfeld, CFO, said in the statement. "Based on our current visibility, we expect to evaluate planned expenses while continuing to pursue and prioritize objectives that fuel the long-term growth of the company." Morgenfeld will assume Brougher’s responsibilities, according to the company.

Pinterest said it expects revenue for the first quarter to be “in the range of $269 million to $272 million.” Wall Street is looking for $269.3 million, based on a Factset survey of 21 analysts. Pinterest didn’t offer an earnings outlook for the quarter. Analysts are expecting a loss of $49.6 million, or 8 cents a share.

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For the quarter ended March 31, the company forecast global monthly active users in the range of 365 million to 367 million. Of those 89 million to 90 million are in the U.S., while 276 million to 277 million are international.

The company said it ended the first quarter with approximately $1.7 billion in cash, cash equivalents and marketable securities, no financial debt, and an undrawn $500 million revolving credit facility.

Shares of Pinterest rose $1.74, or 11.6%, to $16.80 in after hours trading.