Pinterest (PINS) reported second-quarter results late Thursday that soundly beat estimates but fell short on user growth expectations. Pinterest stock plunged.
The social media company reported adjusted earnings of 25 cents a share on revenue of $613 million. Analysts expected Pinterest to report earnings of 13 cents a share on revenue of $562.2 million.
Pinterest stock plummeted 16.3%, near 60.30, during after-hours trading on the stock market today.
The company expects revenue will grow in the low-40% range year over year in the third quarter. That’s about half the revenue growth it saw in the prior two quarters. The company did not provide estimates for monthly active users for its third quarter due to the unknown impact of Covid-19 variants.
Pinterest Active Users Fall Short
Pinterest ended the quarter with 454 million monthly active users, below expectations of 482 million.
The company developed an internet application where users can browse millions of images and videos posted by Pinterest users.
Pinterest is not a social media experience like Facebook, Snap (SNAP) and Twitter (TWTR). It’s considered more of a personal experience. When users come to Pinterest, often they are trying to find or accomplish something. The site can help with generating ideas or inspiration on a wide range of activities.
The company held its initial public offering in April 2019 that priced PINS stock at 19, raising $1.4 billion with a valuation above $12 billion.
Pinterest stock is up 9% this year.
More to follow.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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