Pinterest was rising 16.4% to $32.93 a share in early trading on Friday.
Loss per share for the second quarter of 2019 came in at an adjusted 6 cents, narrower than Wall Street's expected loss of 8 cents and an improvement from the year-ago quarter's loss of 27 cents. Revenue was $261 million, growing 62% year-over-year, and beating analyst's estimates of $236 million.
Management also raised guidance for 2019 and said it now expects revenue of between $1.095 billion and $1.115 billion, compared to a previous range of $1.055 billion and $1.080 billion. Adjusted EBITDA is now expected to come in for full year 2019 at between a loss of $25 million and $50 million, narrower than a prior range of a lost between $45 million and $70 million.
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Here's what analysts said about Pinterest's robust quarter:
Credit Suisse, Neutral, Price Target Raised to $33 From $28
"As we have previously noted, Pinterest is just starting to ramp its Int'l sales effort as it exports the products it has already built for the US. Similar to the ad monetization ramp on other properties, Pinterest disclosed that ad volume drove nearly all of the revenue growth - given the more nascent monetization levels, we believe that the company will continue to ramp the ad load to keep pricing at attractive levels in a bid to garner more revenue dollars. We believe there remains potential for upside to both 3Q19 and 4Q19 revenue estimates as the updated FY19 guidance calling for $1.095-1.112b in revenue implies that the nominal dollars of revenue ramp particularly in the US is lower than that of 2H18."
- Stephen Ju
D.A. Davidson & Co., Neutral, Price Target Raised to $28 From $23
"Once again, we were encouraged by the improving international monetization results. For 2Q19, its U.S./International audience (MAU) mix was 28%/72%, while its monetization (revenue) mix was 91%/9%. This compares against 32%68% and 95%/5% respectively, from last year. A more even distribution of revenue may inspire us to upgrade shares in the future."
"We were excited to hear about Pinterest's efforts to expand video content on its platform. Management noted more videos were viewed in 2Q19 than all of last year combined. Note, we believe the rollout of 5G broadband wireless could be a catalyst for its video efforts. Additionally, we were encouraged by Pinterest's efforts to make its platform easier for consumers to shop."
"Management answered our question on the call regarding regulatory risk and big tech, including increasing concerns about privacy. We believe, Pinterest's privacy-related strategy provides it a competitive advantage against Facebook and Google, which is becoming increasingly important in today's global regulatory environment."
- Tom Forte
Pivotal Research Group, Hold, Price Target Raised to $32 From $29
"BOTTOM LINE: We are increasing our PT from $29 to $32 based on 12x 2020 EV/Revs but remain hold rated on the stock based purely on valuation. Given how relatively new the street is to the PINS story and management team, the jury was out as to whether the management team's style would be conservative with revenue guidance for the year - particularly after Q119. Based on 2Q19 results, they feel more likely conservative than we or investors had thought. There were encouraging metrics around shopping feeds, an extremely constructive tone, and continued roll out to new countries - expanding to 19 countries from 13 at in the quarter Q119."
"There is now likely upside for 2H19 based on the Q219 10% beat, and some flow through to the FY19 guidance."
- Michael Levine
Nomura Instinet, Buy, Price Target Raised to $39 From $34
"Canada was cited as an early success story (4x YoY growth in 2Q19) and the company is confident in its expansion playbook. We reiterate our Buy rating and our target price goes to $39."
- Mark Kelley
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