NYSE$PINS

Pinterest Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Pinterest's Q1 revenue grew 35% year over year, driven by video, conversion optimization, and shopping ad products, but experienced a sharp deceleration in March due to COVID-19.

Pinterest's Q1 2020 saw revenue growth of 35% year-over-year to $272 million, with global MAUs increasing by 26% to 367 million. However, the company experienced a sharp deceleration in revenue growth in mid-March due to the COVID-19 pandemic. The GAAP net loss was $141 million, and the Adjusted EBITDA was a loss of $53 million.

  • Q1 revenue grew 35% year over year to $272 million, but growth decelerated sharply in mid-March due to COVID-19.
  • Global MAUs grew 26% year over year to 367 million.
  • GAAP net loss was $141 million.
  • Adjusted EBITDA was $(53) million.

Headline financials

Total Revenue

$272M

Previous: $202M+34.7%
EPS (adj)

-$0.10

Previous: -$0.32+68.8%
Global MAUs

367.0M

Previous: 291.0M+26.1%
U.S. and Canada MAUs

90.0M

Previous: 85.0M+5.9%
Europe MAUs

277.0M

Previous: 206.0M+34.5%
Global ARPU

$0.77

Previous: $0.73+5.5%
U.S. and Canada ARPU

$2.66

Previous: $2.26+17.7%
Europe ARPU

$0.13

Previous: $0.07+85.7%
Free Cash Flow

-$141M

Previous: -$45.1M-212.9%
Net Income

-$141M

Previous: -$41.4M-240.9%
Operating Income

-$146M

Previous: -$44.8M-225.9%
Gross Profit

$173M

Previous: $128M+34.7%
Cash & Equivalents

$741M

No prior period
Total Assets

$2.29B

No prior period

Revenue & EPS history

Pinterest · Revenue · Quarterly

$272M

Q1 2020+34.7%vs Q1 2019
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Forward guidance

Given the uncertainties related to the ongoing COVID-19 pandemic and the rapidly shifting macroeconomic conditions, we are not providing guidance expectations for revenue or Adjusted EBITDA for 2020.

Tailwinds

  • Strategic priorities for 2020 remain content, ads diversification, use case expansion and shopping.
  • Pinterest is a place to inspire people with helpful and actionable information while helping business partners succeed with the tools and insight they need most.
  • Continue to invest in these priorities in the coming year as we pursue and prioritize long-term growth.
  • Strong balance sheet to support that, with $1.7 billion in cash, cash equivalents, and marketable securities and a $500 million undrawn revolver.
  • Making adjustments to our expenses where appropriate.

Headwinds

  • Uncertainties related to the ongoing COVID-19 pandemic.
  • Rapidly shifting macroeconomic conditions.
  • Cost of revenue has generally grown with users rather than revenue, which in this environment puts some pressure on gross margins.
  • Expect to continue to grow operating expenses in Q220 year over year, but at a slower pace compared to Q120.
  • No guidance expectations for revenue or Adjusted EBITDA for 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.0%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.4%

Avg return

30 days after

46%

13 / 28 earnings

Positive

+43.2%

Q2 2020

Best reaction

-23.2%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%+2.2%+3.8%
Q4 2025-16.8%-11.7%-1.9%
Q3 2025-21.8%-17.9%-18.7%
Q1 2025+4.6%+18.1%+22.8%
Q4 2024+19.1%+16.4%+2.1%
Q3 2024-13.6%-9.2%-4.4%
Q2 2024-14.5%-22.1%-16.5%
Q1 2024+19.8%+19.6%+22.5%
Q4 2023-9.7%-12.5%-14.5%
Q3 2023+22.7%+27.0%+36.6%
Q2 2023-3.9%-8.0%-5.2%
Q1 2023-13.6%-19.7%-8.9%
Q4 2022-3.7%-9.6%-6.3%
Q3 2022+13.0%+9.8%+13.4%
Q2 2022+14.5%+15.8%+18.3%
Q1 2022+10.3%+15.3%+6.4%
Q4 2021-0.3%-2.4%-11.5%
Q3 2021+3.4%+4.4%-19.8%
Q2 2021-23.2%-21.7%-25.3%
Q1 2021-13.6%-13.5%-16.2%
Q4 2020+6.2%+2.9%-11.7%
Q3 2020+19.0%+11.2%+32.7%
Q2 2020+43.2%+42.4%+40.3%
Q1 2020-17.3%-7.7%-1.1%
Q4 2019+15.0%+9.7%-15.5%
Q3 2019-19.5%-21.0%-24.8%
Q2 2019+15.8%+12.7%+18.7%
Q1 2019-6.7%-11.2%-4.3%
Q3 2018
Q2 2018
Q1 2018
Q4 2017

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