Pinterest profit misses estimate, forecasts disappoint, shares nosedive


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Pinterest profit misses estimate, forecasts disappoint, shares nosedive

On Thursday, the 31st of October 2019, Pinterest Inc., the US-based social media web and mobile application company centring its focus mostly on image sharing with 2.91 billion active users had released its third quarterly earnings’ report that fell well-short of Wall Street estimates with a much-lower-than-anticipated quarterly revenue, while the image sharing social media web service provider had also revised its full-yearly sales forecast that failed to reach Wall Street estimates, pulling its shares down by more than 23 per cent to $19.69 after wrapping up the day 3.13 per cent lower to $25.11 a share.

According to Pinterest Inc.’s Q3 earnings’ report that revealed on Thursday (October 31st), the nine-year-old web media service provider’s net revenue rose by about 47 per cent to $279.7 million, but failed to reach an analysts’ estimate of $280.6 million, IEBS data from Refinitiv revealed, while addressing to Pinterest Inc.’s growing expense aimed at diversifying its advertisers, which weighed on Q3 profit, but would likely to conceive better outcomes in a medium- to long-term outlook, Pinterest CFO (Chief Financial Officer), Todd Morgenfeld said in a post-earnings’ call with the reporters and analysts late on Thursday (October 31st), “Pinterest has been investing in areas such as advertiser diversification which would bear fruit over the coming several quarters and years. We’re still in the early days of that, and it will unfold over a period of time. ”