Market Overview

Pinterest Announces Second Quarter 2019 Results

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Pinterest, Inc. (NYSE:PINS) today announced financial results for the quarter ended June 30, 2019.

"We constantly aim to make Pinterest more personal, relevant and useful to our users. Our MAUs hit 300 million at the end of Q2 as we built and expanded products to support this vision," said Pinterest CEO Ben Silbermann. "We also continued to grow and diversify our advertiser base and improve advertisers' ability to measure the effectiveness of their ad spend. This is part of our larger and ongoing effort to create value for businesses on Pinterest."

"Q2 revenue grew 62% year-over-year to $261 million. The momentum we have seen over the past several quarters continued as more advertisers recognize the power of our platform to reach consumers," said Todd Morgenfeld, CFO. "We remain encouraged by trends in U.S. ARPU and by user growth in international markets. While our net margin declined due to RSU expense related to our IPO, our strong revenue performance and focus on execution allowed us to expand Adjusted EBITDA margins by 10 percentage points year-over-year."

Q2 2019 Financial Highlights

  • Q2 revenue grew 62% year-over-year, continuing the momentum we have seen over the past several quarters as more advertisers recognize the power of our platform to reach consumers. Our year-over-year growth was also positively impacted by the later timing of Easter vs. in 2018.
  • Our GAAP net loss of $1.16 billion was impacted by RSU expense recorded in connection with our initial public offering. This quarter included a one-time RSU catch-up charge for all prior periods as a result of the company meeting the performance vesting condition tied to the IPO for all historical RSUs. Our Adjusted EBITDA was $(26) million, as EBITDA margin expanded by 10 percentage points year-over-year.

The following table summarizes our consolidated financial results (in thousands, except percentages, unaudited):

 

Three Months Ended June 30,

 

% Change

 

2019

 

2018

 

Revenue

$

261,249

 

 

$

161,192

 

 

62

%

 

 

 

 

 

 

Net loss

$

(1,159,501

)

 

$

(38,407

)

 

(2,919

)%

 

 

 

 

 

 

Non-GAAP net loss*

$

(24,538

)

 

$

(34,189

)

 

28

%

 

 

 

 

 

 

Adjusted EBITDA*

$

(26,037

)

 

$

(31,898

)

 

18

%

Adjusted EBITDA margin*

(10

)%

 

(20

)%

 

 

 

 

 

 

 

 

* For more information on these non-GAAP financial measures, please see "―About non-GAAP financial measures" and the tables under "―Reconciliation of GAAP to non-GAAP financial results" included at the end of this release.

Q2 2019 Other Highlights

  • Our Monthly Active Users (MAUs) hit 300 million during Q2, and we continued to focus on improving Pinners' experience to drive future user growth and engagement. During the quarter, we made Pinterest more personal by improving search recommendations, and we also made Pinterest more useful by adding more video content and shoppable products.
  • Helping businesses succeed continues to be a priority at Pinterest. In Q2, we made progress on a number of fronts, including the internationalization of our ads business, simplifying our ad systems for smaller businesses and improving advertisers' ability to measure the effectiveness of their ad spend.

The following table sets forth our revenue, MAUs and average revenue per user ("ARPU") based on the geographic location of our users (in millions, except ARPU and percentages, unaudited):

 

Three Months Ended June 30,

 

% Change

 

2019

 

2018

 

Revenue - Global

$

261

 

 

$

161

 

 

62

%

Revenue - United States

$

238

 

 

$

153

 

 

55

%

Revenue - International

$

24

 

 

$

8

 

 

199

%

 

 

 

 

 

 

MAUs - Global

300

 

 

231

 

 

30

%

MAUs - United States

85

 

 

75

 

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