What led Pinterest Inc (NYSE: PINS) stock crash

Free $100 Forex No-Deposit Bonus

Pinterest Inc (NYSE: PINS) stock lost over 16.7% on 1st November, 2019 (as of 1:43 pm GMT-4; Source: Google finance) after the company posted mixed results with revenue below the analysts’ projections for the third quarter of FY 19 due to slower than expected growth in monetization and largely in-line growth in number of users. The company is focusing to expand overseas, especially in its advertising business. The company is able to monetize its American users well, which led to $2.93 per user in the U.S. during the third quarter, but is still growing its capability to advertise to its rapidly expanding international audience.

The company’s monthly active users in the U.S. increased by just 8% year-over-year to 87 million in the third quarter and international users grew 38% to 235 million. Global Monthly active users grew 28% to 322 million people during the quarter. However, Pinterest collected just 13 cents for every foreign user in the third quarter, as it continues to build out its advertising capabilities on other continents.

PINS in the third quarter of FY 19 has reported the adjusted earnings per share of penny, beating the analysts’ estimates for the adjusted loss per share of 4 cents. The company had reported the adjusted revenue growth of 47 percent to $279.7 million in the third quarter of FY 19, missing the analysts’ estimates for revenue of $281 million. The revenue from International in total has more than tripled in the third quarter off a small base, from about $9 million to approximately $28 million. International advertising has formed more than 10% of Pinterest’s revenue total, after representing less than 5% of sales in the same quarter a year ago.

Additionally, the company is now advertising in 9 new markets including Greece, Poland, Hungary and Romania. In total, the company now serve ads in 28 countries, up from 19 at the end of the second quarter. PINS is also looking to increase revenue through video advertisements and strengthening the users’ ability to buy items directly from the online scrapbooks they create or view on the social-media service.

For FY 19, the company expects total revenue to be between $1,100 million and $1,115 million, compared to the prior forecast of $1,095 million and $1,115 million. Adjusted EBITDA is expected to be in the range of $(30) million and $(10) million, compared to the prior forecast of $(50) million and $(25) million.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.