2023-04-27 16:26:24 ET
Pinterest stock ( NYSE: PINS ) slipped 6% postmarket despite first-quarter earnings that beat expectations on top and bottom lines, as it forecast second-quarter growth to match that of the past two quarters amid hopes it would accelerate, and some continuing cost increases.
Revenues rose nearly 5% to $602.6M, vs. forecast growth of just over 3%.
Non-GAAP net income fell 16% to $57.7M and topped expectations. But amid share-based compensation that nearly doubled to $143M, and restructuring charges of $121M, net loss as reported widened to $208.6M from a year-ago loss of $5.3M.
The company said, though, its current expectation is that second-quarter revenue would grow "roughly in line with the growth we saw in Q4 2022 and Q1 2023" -- of 3.6% and 4.8% respectively, against Wall Street analysts who foresee second-quarter revenue growth closer to 6%.
Also, Pinterest expects its non-GAAP operating expenses to grow "low teens" on a percentage basis quarter-over-quarter.
“I’m proud of how our team is continuing to execute,” said CEO Bill Ready. “In Q1, we grew our business globally through improved content relevance, shoppability, and by delivering strong results for our advertisers. Today, we’re taking meaningful steps towards expanding our ads business by opening up third-party ad demand on Pinterest, starting with Amazon as our first partner."
In operating metrics, global monthly active users rose 7% year-over-year, to 463M. And average revenue per user dipped 1%, to $1.32.
ARPU in its highest-revenue region, the U.S./Canada, rose 3% to $5.11. In its highest-growth and highest-user region, Rest of World, ARPU ticked up to $0.10 from $0.08.
Conference call to come at 4:30 p.m. ET .
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Pinterest falls 6% as Q1 beats, but Q2 costs ramp higher