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PINS Stock Down 19% in Pre-market, Pinterest Reports Mixed Q2 2021 Earnings Results

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by Steve Muchoki · 3 min read
PINS Stock Down 19% in Pre-market, Pinterest Reports Mixed Q2 2021 Earnings Results
Photo: NYSE / Twitter

Pinterest recorded a revenue of $613 million versus $562.1 expected by analysts according to Refinitiv.

After hours, Pinterest Inc (NYSE: PINS) stock was trading 19.07% down from Thursday’s closing price of $72.04. In pre-market, the tendency is just the same. PINS shares had dropped approximately 6.01% during the day. The dip has been attributed to mixed Pinterest Q2 2021 earnings results announced on Thursday.

Notably, the photo-sharing platform reported adjusted earnings per share of 25 cents against 13 cents estimated by analysts according to a survey conducted by Refinitiv. Additionally, Pinterest recorded a revenue of $613 million versus $562.1 expected by analysts according to Refinitiv.

Worth noting, Pinterest reported that its monthly active users were 454 million during the second quarter against a forecast of 482 million according to StreetAccount. During the last three months of the first half, the company said that the average revenue per user came in at $1.32 versus $1.17 estimated by StreetAccount.

According to the company through the earnings report, its United States Monthly Active Users (MAUs) have declined by approximately 7%, while global Monthly Active Users (MAUs) have grown by approximately 5% year-to-year as of July 27.

“Since mid-March, however, we believe engagement on Pinterest was disproportionately lower as people began spending more time socializing with friends outside their homes, eating in restaurants, and generally participating in activities that are not our core use cases,” the company explained to investors.

During the second quarter, the company reported a net income of $69.4 million. This was a huge turnaround as the company reported a net loss of more than $100.7 million at the same time last year. Consequently, the company’s revenue has grown 125% year over year on a yearly basis.

Pinterest Shares and Future Market Perspective after Q2 2021

Pinterest shares are up over 185% in the past year through Thursday. However, their growth rate has declined year to date as they have added approximately 9.32% according to MarketWatch.

However, the company is confident the future is still promising with its $49 billion market capitalization.

“Our second-quarter results reflect both the strength of our business and the recent shift in consumer behavior we’ve seen as people spend less time at home,” said Ben Silbermann, CEO, and co-founder, Pinterest. “While we navigate through pandemic impacts, Pinterest is focused on building for the long-term by transforming from a place to browse, save and organize to a community of inspiring people sharing their passions and expertise.”

The company said it expects its third-quarter revenue growth to about 40%, whilst a poll by Refinitiv indicated 42.8%. On the side of monthly active users, the company declined to offer guidance for the third quarter citing unpredictable Covid conditions.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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