Pinterest shares plunging on disappointing 2019 revenue forecast

(Reuters) – Pinterest Inc on Thursday forecast 2019 turnover was largely in line with Wall Street targets, disappointing investors who had expected more of the fresh audience, high flying stock and send the shares down 16 percent.

FILE PHOTO: the screens display the logo of the company Pinterest Inc. during the company’s IPO at the front of the New York Stock Exchange (NYSE) in New York, USA, April 18, 2019. REUTERS/Brendan McDermid/File Photo

The online scrapbook company the shares have risen by 62% from the initial price of $19 last month.

“It is clear that the after-hours pullback is a reflection of the expectations of investors to a high post in the quarter,” DA Davidson’s analyst Tom Forte said.

Pinterest is the sales outlook was a disappointment, said Forte, especially given the high expectations reflected in the run-up in shares.

The company expects full-year revenues between $1.055 billion and $1.08 billion, the midpoint of which is slightly above analysts estimate of $1.06 billion, driven by the average revenue per user (ARPU) in the United States.

Pinterest also said in a regulatory filing would look to invest in advertising products throughout the year.

The company, which calls its users “pinners”, added 291 million monthly active users worldwide in the first quarter, above estimates of 289.3 million, according to IBES data of Refinitiv. ARPU worldwide increased 26% to 73 cents, the company said.

Net loss narrowed to $41.4 million in the quarter ended March 31 of € 52.7 million a year earlier. Excluding certain items, the company lost 32 cents a share.

The total turnover increased from approximately 54% to $201.9 million, beating the estimates of $200.6 million.

In contrast to Pinterest, other companies that place their stock on the market in 2019 such as Lyft Inc. and Uber Technologies Inc. there is a sharp decline. Uber shares are down almost 18% since the IPO, while Lyft a decrease of approximately 23%.

Reporting by Vibhuti Sharma and Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli

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