Pinterest Beats Forecast as U.S. Revenue Growth Accelerates
Monthly active users reached a record 640 million, up 11% from a year earlier.
Pinterest Inc. (PINS), the visual-discovery platform, reported an 18% increase in second-quarter revenue to $1.180 billion, exceeding the top of its forecast by $27 million.
The quarter extended a rebound that began late last year. Reported growth held at the first quarter’s 18% pace after accelerating from 14% in the fourth quarter, while constant-currency growth strengthened to 17% from 15%.
Non-GAAP earnings rose 9% to $250 million, and non-GAAP earnings increased to $0.43 a share from $0.33 as the diluted share count declined. On a GAAP basis, Pinterest recorded a $47 million net loss, compared with net income of $39 million a year earlier, as costs and expenses rose faster than revenue.
U.S. and Canada revenue increased 18% to $880 million, accelerating from 13% growth in the first quarter. Monthly users in the region were unchanged sequentially, while average revenue per user climbed 14% to $8.30, making monetization the principal regional growth driver.
Growth cooled outside Pinterest’s largest market. European revenue rose 12%, down from 27% growth in the first quarter, while Rest-of-World revenue increased 38% after a 59% rise. Global average revenue per user advanced 7% to $1.86 as global monthly users grew 11%.
Adjusted EBITDA increased 24% to $311 million, topping the high end of Pinterest’s forecast by $35 million, and the margin expanded to 26% from 25%. Operating cash flow rose 41% to $293 million and free cash flow increased 37% to $270 million, reversing first-quarter declines.
Pinterest expects third-quarter revenue of $1.190 billion to $1.210 billion, representing growth of 13% to 15%, and adjusted EBITDA of $335 million to $355 million. The revenue outlook points to slower growth than in the second quarter even as the EBITDA target rises.
The company completed more than $2 billion of share repurchases during the first half at an average price of $18.17, following authorization of a new $3.5 billion program. Pinterest also recorded $14.3 million of second-quarter restructuring charges as it entered the slower-growth period with a reduced share count and a higher profit target.