California-based social media company Pinterest, Inc (PINS) turned to profit in the second quarter powered by a 125% increase in revenues. Both revenues and earnings beat the Street view, but the company tanked 19% in the extended session after it reported a decline in users in the U.S.
As of July 27, 2021, U.S. MAUs have declined approximately 7% and global MAUs have grown approximately 5% year over year, the company said in a statement.
The net income for the company was $69.42 million or $0.10 per share compared to a loss of $100.75 million or $0.17 loss per share.
Excluding one-time items, net income was $169.93 million or $0.25 per share for the quarter, compared to a loss of $38.35 million or $0.07 loss per share last year. Analysts polled by Thomson Reuters projected an earning of $0.13 per share for the quarter.
The company’s second-quarter revenues increased to $613.21 million from $272.49 million in the same quarter last year. Analysts had a consensus revenue estimate of $561.88 million. Revenue growth was driven by an 89% increase in average revenue per user to $1.34 from $0.70 year-over-year.
Moving ahead, the company sees revenues to grow in a low-40% range in the third quarter. Analyst currently estimate a revenue growth of 42.50%.
Commenting on the results, Ben Silbermann said, “While we navigate through pandemic impacts, Pinterest is focused on building for the long-term by transforming from a place to browse, save and organize to a community of inspiring people sharing their passions and expertise.”
PINS closed Thursday’s regular trading at $72.04, down $4.61 or 6.01%, on the Nasdaq. The stock further slipped $13.74 or 19.07% in the after-hours trading.
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