Pinterest stock grows 25% after optimistic forecast, huge beating on user growth


Actions de Pinterest Inc. PINS,
+ 0,96%
are up 25% in pre-market trading on Friday after the photo platform easily exceeded expectations and gave an optimistic forecast for the third quarter. The company posted a net loss of $ 100.7 million, or 17 cents per share, compared to a loss of $ 1.16 billion, or $ 2.62 per share, in the prior year quarter. On an adjusted basis, Pinterest lost 7 cents per share, down from 6 cents per share the year before. The FactSet consensus was for an adjusted loss of 14 percent per share. Revenue rose from $ 261.25 million to $ 272.49 million, while analysts polled by FactSet expected $ 250 million. The company said it expects revenue for July to increase by around 50% through July 29, compared to a year earlier, and overall third-quarter revenue could be up from ‘about 30%. “We are encouraged by our business performance in July, but huge uncertainty remains given the ongoing COVID-19 pandemic and other factors,” Pinterest said in its statement. The company saw monthly active users in the June quarter climb to 416 million from 367 million in the March quarter. That number far exceeded the FactSet consensus, which sought 379 million monthly active users for the June period. The company had 96 million monthly active users in the United States and 321 million internationally. Global average revenue per user fell to 70 cents from 88 cents for the quarter, but topped estimates by 67 cents. Pinterest stocks have gained 22% in the past three months, the S&P 500 SPX,
increased by 11%.


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