Pinterest's annual sales forecast falls short; shares tumble
Pinterest Inc. gave an annual sales forecast that fell short of estimates, shaking the confidence of investors who had pushed the social-media company’s stock up more than 60 percent in its first month of public trading.
The digital scrap-booking company said 2019 revenue will be $1.06 billion to $1.08 billion, compared with the average analyst’s projection of $1.09 billion, according to data compiled by Bloomberg. Shares fell 13 percent in extended trading.
Pinterest makes money from advertising and markets itself as a way for brands and retailers to reach consumers at the inspiration phase of the shopping process. The company has been a bright spot in the tech industry’s rocky IPO season, in which highly anticipated public offerings from ride-hailing startups Uber Technologies Inc. and Lyft Inc. have disappointed. Pinterest’s stock jumped 28 percent in its first day of public trading on April 18, and closed at $30.86 on Thursday, 62 percent higher than its IPO price.
First-quarter sales rose 54 percent to $201.9 million, better than analysts’ average estimate of $200.8 million. The net loss for the period narrowed to $41.4 million, or 33 cents a share, Pinterest said Thursday in a statement. The loss excluding some items was 32 cents a share. Analysts projected an adjusted loss of 10 cents a share.