Tech

Pinterest drops after reporting slowing user growth in first quarter results

Key Points
  • Shares of Pinterest fell as much as 19% in after-hours trading on Tuesday after the company reported its first quarter results. 
  • The company's revenue came in at $272 million, up nearly 35% from the $201.9 million the company reported in the first quarter of 2019.
  • Pinterest's user base grew to 367 million monthly active users, up 26% from last year.
Pinterest CEO Ben Silbermann speaks in conversation with Matthew Lynley of TechCrunch during the TechCrunch Disrupt SF 2017 on September 18, 2017 in San Francisco, California.
Justin Sullivan | Getty Images News | Getty Images

Shares of Pinterest fell as much as 19% in after-hours trading on Tuesday after the company reported disappointing user growth its first quarter results

  • Loss per share: 10 cents, excluding certain items
  • Revenue: $272 million

Analysts surveyed by Refinitiv expected a loss of 9 cents per share and $270.1 million in revenue for the first quarter. However, comparing Pinterest's results against analysts' estimates is not straightforward given the coronavirus pandemic's impact on economies around the world. 

Pinterest's user base grew to 367 million monthly active users, up 26% from last year -- exactly the same annualized growth rate the company saw in the fourth quarter of 2019.

User growth in the U.S. was up 6% compared to a year prior, slower than the 8% annualized growth the company saw in the U.S. during the fourth quarter. 

By comparison, digital marketing rivals Facebook, Google and Snap reported upticks in user growth as people remain sheltered-in-place and are going online to connect with friends as a result of the coronavirus pandemic. 

The company's revenue came in at $272 million, up nearly 35% from the $201.9 million the company reported in the first quarter of 2019. Pinterest's revenue for April was down 8% compared to April 2019, CFO Todd Morgenfeld said on a call with analysts. 

"While we've been adapting to the current environment, we will continue to invest in our strategic priorities of content, ads diversification, use case expansion and shopping," Morgenfeld said in a statement. "We're committed to delivering inspiration to our users and measurable results to businesses."