Shares of Pinterest Inc. (PINS) were off more than 10% in after-hours trading Tuesday after the company beat revenue and user-growth expectations, but said that costs tend to follow user growth rather than revenue, which contributes to margin pressure in the current environment. Pinterest pre-announced some results in early April. The company posted a net loss of $141 million, or 25 cents a share, after a loss of $41 million, or 33 cents a share, in the year-earlier quarter. Pinterest recorded an adjusted loss of 10 cents a share, compared with its loss of 32 cents a share a year prior. Analysts surveyed by FactSet were modeling a net loss per share of 9 cents. Pinterest's revenue grew to $272 million from $202 million, while analysts were calling for $269 million. The company said it had 367 million monthly active users in the quarter. Analysts expected 363 million after the preannouncement. "Our cost of revenue has generally grown with users rather than revenue, which in this environment puts some pressure on gross margins," Pinterest said in a release. "We expect to continue to grow operating expenses in Q220 year over year, but at a slower pace compared to Q120." The COVID-19 outbreak has "certainly had an impact on our business and the businesses of our advertisers," Chief Financial Officer Todd Morganfeld said in a statement. Pinterest shares have declined 5% over the past three months as the S&P 500 has declined 14%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 05, 2020 16:14 ET (20:14 GMT)
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