Pinterest, Inc. (NYSE: PINS) today provided preliminary
financial results for the quarter ended March 31, 2020. Pinterest
has also determined to withdraw its financial guidance for the full
year 2020 due to the growing uncertainty of the impact of COVID-19
on the global operating and economic environment and the resulting
effect on advertiser demand.
Based on information available to it through the date of this
statement, Pinterest preliminarily expects revenue for the quarter
ended March 31, 2020 in the range of $269 million to $272 million.
For the quarter ended March 31, 2020, it also expects global
monthly active users in the range of 365 million to 367 million,
with 89 million to 90 million in the U.S. and 276 million to 277
million internationally. Pinterest ended the first quarter with a
strong balance sheet, with approximately $1.7 billion in cash, cash
equivalents and marketable securities on March 31, 2020, no
financial debt, and an undrawn $500 million revolving credit
facility.
Pinterest is withdrawing the revenue and adjusted EBITDA margin
guidance for full year 2020 that it initially issued on February 6,
2020. In light of the rapidly evolving and unpredictable effects of
COVID-19, Pinterest is currently not in a position to forecast the
expected impact of COVID-19 on its financial and operating results
for the remainder of 2020. As the COVID-19 pandemic has continued
to unfold, it has impacted Pinterest’s advertising revenue
globally.
“The near-term financial impact of this pandemic is rapidly
evolving and difficult to measure and quantify. First-quarter
revenue performance was consistent with our expectations through
the middle of March, when we began to see a sharp deceleration.
Fortunately, despite weakness across nearly the entire advertising
market, our exposure to some of the most affected segments like
travel, automotive, and restaurants has not been significant," said
Todd Morgenfeld, CFO, Pinterest. “Based on our current visibility,
we expect to evaluate planned expenses while continuing to pursue
and prioritize objectives that fuel the long-term growth of the
company.”
“These are clearly tough times for everyone. But we are really
proud that people all over the world are finding inspiration on
Pinterest as they navigate this new reality,” said Ben Silbermann,
CEO and co-founder, Pinterest. “More than ever, people need great
ideas on everything from building a home office to activities to do
with their kids. In the last two weeks, we’ve seen record levels of
engagement in Pinners searching for and saving ideas, and creating
new boards to organize their projects. We plan to continue doing
everything possible to keep delivering for them.”
The foregoing results are preliminary and subject to change
following completion of Pinterest’s quarter-end review process.
Pinterest plans to provide more detail around its first quarter
2020 results on its earnings call on May 5th at 2:00 p.m. Pacific
Time.
Separately, Pinterest also today announced that Françoise
Brougher, the Company’s Chief Operating Officer, would be leaving
Pinterest, effective as of April 7, 2020, and Todd Morgenfeld will
assume her responsibilities.
“I am deeply grateful to Françoise for her substantial
contributions to Pinterest. As we continue to position the company
for long-term growth, we believe consolidating our financial and
COO organizations under one leader will accelerate our speed of
execution,” said Ben Silbermann. "We believe Todd’s wide range of
experience across diverse organizations -- including the Army,
investment firms and large tech companies -- has prepared him to
navigate our current circumstances with business acumen, as well as
operational and financial rigor."
First Quarter Earnings Release Details
Pinterest expects to release financial results and a letter to
shareholders for the first quarter 2020 on Tuesday, May 5, 2020
after market close. The company will host a Q&A conference call
to discuss these results at 2:00 p.m. PT (5:00 p.m. ET) on the same
day.
A live webcast of the conference call and related earnings
release materials can be accessed on Pinterest’s Investor Relations
website at investor.pinterestinc.com. A replay of the webcast will
be available through the same link following the conference
call.
Disclosure Information
Pinterest uses and intends to continue to use its Investor
Relations website as a means of disclosing material nonpublic
information and for complying with its disclosure obligations under
Regulation FD. Accordingly, investors should monitor the company’s
Investor Relations website, in addition to following the company’s
press releases, SEC filings, public conference calls, presentations
and webcasts.
About Pinterest
Pinterest is a visual discovery engine people use to find
inspiration for their lives, including recipes, home and style
ideas, travel destinations and more. People have saved more than
240 billion Pins across a range of interests, which others with
similar tastes can discover through search and recommendations.
Located in San Francisco, Pinterest launched in 2010 and has
hundreds of millions of monthly active users around the world.
Available on iOS and Android and at pinterest.com.
Forward-looking statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Exchange Act of 1934, as amended,
about us and our industry that involve substantial risks and
uncertainties, including, among other things, the preliminary
statements in this press release regarding results that Pinterest
expects to announce following the completion of Pinterest’s
quarter-end review process, as well as statements about our future
operational and financial performance. Words such as "believe,"
"project," "may," "will," "estimate," "continue," "anticipate,"
"intend," "expect," "plan" and similar expressions are intended to
identify forward-looking statements. These forward-looking
statements are only predictions and may differ materially from
actual results due to a variety of factors including: uncertainty
regarding the duration and scope of the coronavirus referred to as
COVID-19 pandemic; actions governments and businesses take in
response to the pandemic, including actions that could affect
levels of advertising activity; the impact of the pandemic and
actions taken in response to the pandemic on global and regional
economies and economic activity; the pace of recovery when the
COVID-19 pandemic subsides; general economic uncertainty in key
global markets and a worsening of global economic conditions or low
levels of economic growth; the scope and impact of the recent
outbreak of COVID-19 on our planned investments, operations,
expenses, revenue, cash flow, liquidity and users; our ability to
attract and retain Pinners and engagement levels; our ability to
provide useful and relevant content; risks associated with new
products and changes to existing products as well as other new
business initiatives; our ability to maintain and enhance our brand
and reputation; compromises in security; our financial performance
and fluctuations in operating results; our dependency on internet
search engines’ methodologies and policies; discontinuation,
disruptions or outages in authentication by third-party login
providers; changes by third-party login providers that restrict our
access or ability to identify users; competition; our ability to
scale our business and revenue model; our reliance on advertising
revenue and our ability to attract and retain advertisers and
effectively measure advertising campaigns; our ability to
effectively manage growth and expand and monetize our platform
internationally; our lack of operating history and ability to
attain and sustain profitability; decisions that reduce short-term
revenue or profitability or do not produce expected long-term
benefits; risks associated with government actions, laws and
regulations that could restrict access to our products or impair
our business; litigation and government inquiries; privacy, data
and other regulatory concerns; our ability to protect our
intellectual property; real or perceived inaccuracies in metrics
related to our business; disruption, degradation or interference
with the hosting services we use and infrastructure; our ability to
attract and retain personnel; and the dual class structure of our
common stock and its effect of concentrating voting control with
stockholders who held our capital stock prior to the completion of
our initial public offering. These and other potential risks and
uncertainties that could cause actual results to differ from the
results predicted are more fully detailed in our Annual Report on
Form 10-K for 2019, which is available on our investor relations
website at investor.pinterestinc.com and on the SEC website at
www.sec.gov. Additional information will be made available in our
Quarterly Report on Form 10-Q for the three months ended March 31,
2020 and other future reports that we may file with the SEC from
time to time, which could cause actual results to vary from
expectations. All information provided in this release is as of
April 7, 2020. Undue reliance should not be placed on the
forward-looking statements in this press release, which are based
on information available to us on the date hereof. We undertake no
duty to update this information unless required by law.
Limitation of key metrics and other data
We define a monthly active user as an authenticated Pinterest
user who visits our website, opens our mobile application or
interacts with Pinterest through one of our browser or site
extensions, such as the Save button, at least once during the
30-day period ending on the date of measurement. We present MAUs
based on the number of MAUs measured on the last day of the current
period. We calculate average MAUs based on the average between the
number of MAUs measured on the last day of the current period and
the last day prior to the beginning of the current period. MAUs are
calculated using internal company data based on the activity of
user accounts. We use this metric to assess the growth and health
of the overall business and believe that MAUs is one of the metrics
that best reflect our ability to attract, retain, engage and
monetize our users, and thereby drive revenue. While these numbers
are based on what we believe to be reasonable estimates of our user
base for the applicable period of measurement, there are inherent
challenges in measuring usage of our products across large online
and mobile populations around the world. In addition, we are
continually seeking to improve our estimates of our user base, and
such estimates may change due to improvements or changes in our
methodology.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200407005761/en/
Investor relations: Doug Clark ir@pinterest.com
Media: Mike Mayzel press@pinterest.com
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