Pinterest shares jump as company issues early Q1 guidance

A banner for the online image board Pinterest Inc. hangs from the New York Stock Exchange on the morning that Pinterest makes its initial public offering on April 18, 2019.

Spencer Platt | Getty Images

Shares of Pinterest jumped as much as 13% Tuesday after hours, after the company issued early guidance for its fiscal first quarter that beat analysts’ expectations. 

The company said it expects revenue for its first quarter in the range of $269 million to $272 million. Average consensus estimates according to Refinitiv was $267 million, but this included many estimates that have not been updated since the coronavirus pandemic and broad quarantines fundamentally changed economic activity. A FactSet survey of analysts who did update numbers in the past month put estimated revenue at $252 million, a number that Pinterest beat handily.

“First-quarter revenue performance was consistent with our expectations through the middle of March, when we began to see a sharp deceleration. Fortunately, despite weakness across nearly the entire advertising market, our exposure to some of the most affected segments like travel, automotive, and restaurants has not been significant,” the company said. 

Pinterest’s global monthly active users also grew in its first quarter. The company said it expects between 365 million to 367 million global active users, compared to FactSet’s consensus estimate of 353 million. 

Pinterest also said it will report first quarter earnings May 5. 

Pinterest said it ended the quarter with $1.7 billion in cash, cash equivalents and marketable securities, no financial debt and an undrawn $500 million revolving credit facility.

Pinterest also withdrew its full year guidance Tuesday because the COVID-19 pandemic has been impacting its global advertising revenue. 

“In light of the rapidly evolving and unpredictable effects of COVID-19, Pinterest is currently not in a position to forecast the expected impact of COVID-19 on its financial and operating results for the remainder of 2020.  As the COVID-19 pandemic has continued to unfold, it has impacted Pinterest’s advertising revenue globally,” the company said in a press release. 

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