(Reuters) – Pinterest Inc (PINS.N) on Thursday missed Wall Street estimates for third-quarter revenue, as it earned lower-than-expected average revenue per user.
FILE PHOTO: A guest hold up a phone during the Pinterest Inc. IPO on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 18, 2019. REUTERS/Brendan McDermid
Shares of the online scrapbook company, which have risen about 36% from its initial public offering price in April, dipped about 16% to $21.07 in extended trading.
Pinterest, on average, earned revenue of 90 cents per user globally in the quarter. Analysts were expecting average revenue of 91 cents per user, according to research firm FactSet.
The company expects 2019 total revenue between $1.10 billion (£850.41 million) and $1.115 billion, compared to its prior forecast of $1.095 billion and $1.115 billion.
Pinterest, which calls its users “Pinners”, said monthly active users jumped 28% to 322 million. Analysts were expecting about 307 million users, according to IBES data from Refinitiv.
Interactive graphic on Pinterest users: tmsnrt.rs/2pwCD7X
Pinterest generates revenue by placing advertisements among pins or posts, basically ideas for clothes, décor and recipe, uploaded on the site by users.
Total revenue rose about 47% to $279.7 million, but fell short of analysts’ estimates of $280.6 million, according to IBES data from Refinitiv.
Net loss widened to $124.7 million, in the third quarter ended Sept. 30, from $18.9 million, a year earlier.
Excluding certain items, the company earned a cent per share. Analysts were expecting a loss of 4 cents.
Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber