Pinterest (PINS) earnings Q2 2021

Ben Silbermann, Pinterest Co-Founder, Chairman and CEO, speaks in front of the company’s logo on the New York Stock Exchange (NYSE) during the company’s IPO on April 18, 2019 in New York City.

Johannes Eisele | AFP | Getty Images

Pinterest shares fell more than 17% in after-hours trading Thursday after the company released its second-quarter results, which showed a drop in monthly user numbers.

Here’s how the company performed in the second quarter compared to analysts’ expectations:

  • Adjusted earnings per share: 25 cents vs. 13 cents forecast from refinitive
  • Revenue: $ 613 million versus Refinitiv’s $ 562.1 million forecast
  • Monthly active users: 454 million versus 482 million forecast by StreetAccount
  • Average income per user: StreetAccount forecast $ 1.32 vs. $ 1.17

Pinterest had 454 million monthly active users, more than 5% less than the 478 million the company reported in April. The company said its US MAUs were down about 7% through July 27, while global MAUs grew about 5% year over year.

Others in the social media market also struggled to meet user growth expectations. Twitter just fell short of its monetizable daily active user expectations last week. Facebook met DAU expectations on Wednesday, but fell just short of MAU expectations. Snap exceeded its DAU expectations last week, however.

Pinterest attributed its drop in users to a disproportionate increase in usage in 2020 as people were stuck at home due to the Covid-19 pandemic.

“However, since mid-March, we believe that engagement on Pinterest has been disproportionately lower as people spent more time meeting friends away from home, eating out at restaurants, and generally participating in activities that are not our core use cases “Said the company in a letter to shareholders.

The company reported revenue of $ 613 million for the quarter, an increase of more than 125% year over year. Pinterest also posted net income of $ 69.4 million. A year ago, the company reported a net loss of more than $ 100.7 million.

Pinterest also provided an estimate of revenue growth for the third quarter “in the lower 40s” on an annualized basis. This was roughly in line with Refinitiv’s expectations of 42.8% year-on-year sales growth for the coming quarter.

However, the company declined to provide a third quarter MAU guidance due to the unknown effects of Covid-19 variants.

“The evolution of the COVID-19 pandemic and associated restrictions remains unknown and we are not providing guidance for MAUs in the third quarter of 2021 as we have no insight into certain key factors of engagement,” the company said in a statement.

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