Pinterest Shares Fall After Company Misses on Revenues

Shares of social media web and mobile application company Pinterest were heading lower after the company reported a revenue miss and disappointing outlook.

The stock was falling 20% in after-hours trading on Thursday after the company reported third quarter financial results.

For the quarter, Pinterest reported earnings per share of 1 cent, excluding some items. Analysts according to Refinitiv, were expecting a 4 cent loss. Revenue at $279.7 million was a miss compared to the $280.6 million that was expected according to a forecast by Refinitiv.

Monthly active users at 322 million was higher than the 311.8 million expected according to a FactSet forecast. Average revenue per user was 90 cents compared to 91 cents expected per FactSet.

Looking ahead, Pinterest also missed estimates for its 2019 full-year outlook. The company expects revenue at $1.1 billion to $1.115 billion. Analysts were expecting sales of $1.12 billion, according to Refinitiv.

CEO Ben Silbermann said in the statement that the company redesigned the site in the third quarter “to make the service more intuitive” and “to help people discover new ideas they didn’t know about.”

Shares of the stock have lost nearly one-third of their value since August but are still up from their IPO price in April.

Disclaimer: We have no position in Pinterest Inc. (NYSE: PINS) and have not been compensated for this article.