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April 7, 2020, 4:50 p.m. EDT

Pinterest reveals sales and users grew faster than expected despite COVID-19, stock shoots higher

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By Jeremy C. Owens

Pinterest Inc. /zigman2/quotes/211319641/composite PINS +2.47% preannounced first-quarter sales and user growth that were better than expected despite the COVID-19 pandemic Tuesday, sending shares shooting more than 10% higher in after-hours trading. The company also revealed that the chief operating officer is leaving and that the annual guidance provided earlier this year has been rescinded due to uncertainty related to the spread of a coronavirus. Pinterest said that it expects first-quarter sales will be $269 million to $272 million, and that monthly active users were 365 million to 367 million, both matching or beating expectations. Analysts on average expected first-quarter sales of $269 million and active users of 352.7 million. Pinterest's user growth overseas sparked the beat in that area, as it added roughly 30 million overseas users from the fourth quarter, which the company needs to expand its monetization outside the U.S. The company did toss out its revenue and earnings guidance for the full year due to a downturn in advertising and unclear future. "First-quarter revenue performance was consistent with our expectations through the middle of March, when we began to see a sharp deceleration," Chief Financial Officer Todd Morgenfeld said in Tuesday's announcement. "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 also said that COO Françoise Brougher will leave as of today, and her duties will be picked up by Morgenfeld. Pinterest plans to reveal full quarterly earnings information on May 5. After closing with a 1% decline at $15.06, shares topped $16.50 in after-hours trading immediately following the announcement. Shares had declined 19.2% so far this year, as the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.48% dropped 17.6%.

/zigman2/quotes/211319641/composite
US : U.S.: NYSE
$ 20.29
+0.49 +2.47%
Volume: 12.66M
May 29, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.90 billion
Rev. per Employee
N/A
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/zigman2/quotes/210599714/realtime
US : S&P US
3,044.31
+14.58 +0.48%
Volume: 4.38B
May 29, 2020 5:14p
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