Pinterest Earnings in 7 Metrics
Shares of visual search engine and social-media platform Pinterest (NYSE: PINS) tumbled on Friday, falling more than 13% by market close. The decline was triggered by the company's worse-than-expected non-GAAP loss per share.
The pullback in Pinterest's stock price gives investors an opportunity to take a second look at the company, which has only been public for a month. Here's an overview of the most important numbers from Pinterest's first-quarter update.
1. 54% revenue growth
Highlighting how rapidly Pinterest is growing, the company's top line increased 54% year over year in Q1. This easily trumps both Twitter's (NYSE: TWTR) and Snap's (NYSE: SNAP) revenue growth rate during the same period. Twitter's first-quarter revenue increased 18% year over year, and Snap's rose 39%.
Notably, however, this growth was a deceleration from 58% and 64% year-over-year revenue growth in the respective fourth and third quarters of 2018.
2. $202 million of revenue
Pinterest's first-quarter revenue was $202 million. For context, this is well behind Twitter's first-quarter revenue of $787 million but not too far behind Snap's $320 million of revenue.
3. 22% monthly active user growth
Pinterest's global monthly active users increased 22%, to 291 million. This was driven by 6% growth in U.S. users and 29% growth internationally.
4. 26% higher average revenue per user
Average revenue per user (ARPU) jumped, rising 26% year over year, to $0.73.
"An increase in the number of advertisements drove higher ARPU year-over-year in both the U.S and internationally," explained management in the company's first-quarter shareholder letter. "Our ability to provide more ads was supported by higher demand from new and existing advertisers on our platform."
5. $41 million net loss
While Pinterest remains unprofitable, the company's quarterly net loss importantly narrowed, improving from a loss of $52.7 million in the year-ago quarter to a loss of $41.4 million in the first quarter of 2019.
On a non-GAAP basis, Pinterest's net loss was $40.4 million -- better than a non-GAAP net loss of $47.8 million in the year-ago quarter.
6. Negative 19% adjusted EBITDA margin
Highlighting the scalability of Pinterest's business, the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved from negative 35% in the first quarter of 2018 to negative 19% in the first quarter of 2019.
7. 40% to 43% revenue growth in 2019
Management guided for total revenue in 2019 to be between $1.055 billion and $1.080 billion.
"We expect to maintain strong momentum in our business as we achieve larger scale. We expect revenue to grow 40%-43% compared to full-year 2018, driven by improving ARPU, particularly in the U.S.," management said in the company's first-quarter shareholder letter.
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