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Pinterest Shares Plummet By 15% After It Reported More Than Expected Losses In Q1

The shares of Pinterest slumped 19% after it went public for the first time on releasing its report of first quarterly earnings when the markets shut on Thursday. The shares rebounded a bit, settling to 15% after few hours. This would shave $2.5 billion from the company’s market capital which would bring it to $14 billion. The report of the company for 2019’s first quarter.

The loss of the company for every share was 32 cents and its revenue was $201.9 million. The company gave a guidance of revenue of $1.06 bn and $1.08 bn for 2019. This is the first time that the company has generated a minimum of $1 billion as revenue in a year.

Pinterest had reported that it has 291 million active users globally for quarter which is a 22% rise from the last year when there were 239 million active users. The company’s global average revenue for every user grew 26% from last year, 58 cents in first quarter of 2018 to 73 cents in first quarter of 2019.

Pinterest witnessed its peak in the international markets as compared to US International revenue which rose 114% from last year, from $7 million in first quarter of 2018 to $15 million in first quarter of 2019. By comparison, revenue in US rose 51% as compared to the quarter of last year, from $124 million to $187 million.

The active users per month internationally witnessed a significant growth, from 160 million in 2018’s first quarter to 206 million in 2019’s first quarter, which is a 29% increase. The active users of US per month rose only 6% during the same period to 85 million. Todd Morgenfeld, CFO said that for Pinterest the English-speaking countries like UK and Canada have recorded the most of international growth, and Pinterest is currently focusing on expanding in the continent of Europe. The company opened in six markets in last quarter. This would bring its presence to 13 countries now.

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