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Pinterest Earnings in 7 Metrics

By Daniel Sparks - May 17, 2019 at 6:35PM

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The social-media platform may be reporting losses, but there's still a lot to like about its underlying business.

Shares of visual search engine and social-media platform Pinterest (PINS -1.57%) 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.

A woman browsing Pinterest on a tablet

Image source: Pinterest.

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 (TWTR -0.26%) and Snap's (SNAP -2.40%) 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.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Twitter. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Pinterest Stock Quote
$22.54 (-1.57%) $0.36
Twitter, Inc. Stock Quote
Twitter, Inc.
$42.83 (-0.26%) $0.11
Snap Inc. Stock Quote
Snap Inc.
$10.16 (-2.40%) $0.25

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