For the quarter ended March 31, 2020, the company is now looking for global monthly active users in the range of 365-367 million- implying a record-high 30 million+ Net Additions and dramatically exceeding Street estimates of 353 million.
PINS also withdrew financial guidance for the full year 2020 citing the growing uncertainty of the impact of COVID-19 on the economic environment, and the resulting effect on advertiser demand.
“First-quarter revenue performance was consistent with our expectations through the middle of March, when we began to see a sharp deceleration.” commented Todd Morgenfeld, CFO, Pinterest. “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.”
However, despite the recent deceleration in ad revenue, engagement on Pinterest has been strong. Ben Silbermann, CEO and co-founder believes that, more than ever, people need great ideas on everything from building a home office to activities to do with their kids.
“In the last two weeks, we’ve seen record levels of engagement in Pinners searching for and saving ideas, and creating new boards to organize their projects” he told investors.
Separately, Pinterest also announced that Françoise Brougher, the company’s Chief Operating Officer, would be leaving Pinterest, effective as of April 7, 2020, with CFO Todd Morgenfeld taking over her responsibilities.
The stock shows a Moderate Buy analyst consensus on TipRanks, with a $28 average analyst price target (83% upside potential). (See PINS stock analysis on TipRanks)
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