Revenues of Pinterest, Inc. (NASDAQ: PINS) increased in the second quarter and exceeded estimates as the company added more users. As a result, the adjusted loss narrowed from last year, sending the stock sharply higher in the extended trading session on Thursday. The company also raised its full-year revenue guidance.
The number of monthly active users at the end of the June quarter was 300 million, up 30% from last year. The user base in the US and foreign markets rose 13% and 38% respectively. Revenues rose 62% annually to $261 million and came in above the market’s estimates.
The visual search engine reported an adjusted loss of $0.06 per share for the second quarter, narrower than last year’s loss of $0.27 per share. Analysts had forecast a wider loss for the most recent quarter. Unadjusted net loss was $1.16 billion or $2.62 per share, compared to $38.4 million or $0.30 per share in the second quarter of 2018.
“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 Ben Silbermann, CEO of Pinterest.
The average revenue per user (ARPU) increased by 29% to $0.88, worldwide. In the US, ARPU gained 41%, while it more than doubled in the international market.
Encouraged by the positive results, the management revised up its full-year revenue guidance to the range of $1.095 billion to $1.115 billion from the previous outlook of $1.055-$1.080 billion. Adjusted EBITDA is currently expected to be between $(50) million and $(25) million.
The performance of Pinterest at the stock market has been positive since the Wall Street debut and the shares are currently trading above the IPO price. The stock, which hit an all-time high of around $34 days after the IPO, gained 14% since the beginning of the year. It gained sharply Thursday evening, after closing the regular session lower