Pinterest Shares Plunge After Hours
Shares of Pinterest Inc. plunged in extended trading after the company posted a wider-than-expected loss in its first quarterly report following its public-market debut. The drop makes Pinterest the latest technology company to encounter difficulty not long after a much-anticipated public offering. Pinterest shares were off more than 15% late Thursday afternoon. The stock finished up 8% in regular trading on Thursday, closing at $30.86—62% higher than its $19-a-share initial-public-offering price.
Pinterest experienced the most growth in its international markets compared to the U.S. International revenue rose 114% from the same period last year, jumping from $7 million in Q1 of 2018 to $15 million in Q1 of 2019. By comparison, revenue in the U.S. rose 51% compared with last year’s quarter, up from $124 million to $187 million.
On a call with analysts following the report, CFO Todd Morgenfeld said English-speaking countries like the U.K. and Canada have made up the bulk of the company’s international growth, and the company is now focused on expanding in Europe. Pinterest opened in six new markets in the past quarter, bringing its presence to a total of 13 countries.
Pinterest has seen accelerating growth in the number of advertisers on its platform, in part due to the help of its new self-service tool, Morgenfeld said, though he said they don’t expect to see meaningful impact of the tool until next year. Going forward, Pinterest wants to expand its offerings for smaller and mid-sized advertisers.
Across all its markets, Pinterest is hoping to entice users to stay or return to its platform by showing them new projects they can explore on the site. Morgenfeld said many users will turn to Pinterest for a specific purpose but leave after that need is fulfilled. “You may have had a great experience planning your wedding or remodeling your house, but you need to be invited back to be shown the value of being on Pinterest for new use cases,” Morgenfeld said.