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Mar 31, 2020
Pinterest Q1 2020 Earnings Report
Pinterest's Q1 revenue grew 35% year over year, driven by video, conversion optimization, and shopping ad products, but experienced a sharp deceleration in March due to COVID-19.
Key Takeaways
Pinterest's Q1 2020 saw revenue growth of 35% year-over-year to $272 million, with global MAUs increasing by 26% to 367 million. However, the company experienced a sharp deceleration in revenue growth in mid-March due to the COVID-19 pandemic. The GAAP net loss was $141 million, and the Adjusted EBITDA was a loss of $53 million.
Q1 revenue grew 35% year over year to $272 million, but growth decelerated sharply in mid-March due to COVID-19.
Global MAUs grew 26% year over year to 367 million.
GAAP net loss was $141 million.
Adjusted EBITDA was $(53) million.
Revenue by Geographic Location
Forward Guidance
Given the uncertainties related to the ongoing COVID-19 pandemic and the rapidly shifting macroeconomic conditions, we are not providing guidance expectations for revenue or Adjusted EBITDA for 2020.
Positive Outlook
- Strategic priorities for 2020 remain content, ads diversification, use case expansion and shopping.
- Pinterest is a place to inspire people with helpful and actionable information while helping business partners succeed with the tools and insight they need most.
- Continue to invest in these priorities in the coming year as we pursue and prioritize long-term growth.
- Strong balance sheet to support that, with $1.7 billion in cash, cash equivalents, and marketable securities and a $500 million undrawn revolver.
- Making adjustments to our expenses where appropriate.
Challenges Ahead
- Uncertainties related to the ongoing COVID-19 pandemic.
- Rapidly shifting macroeconomic conditions.
- Cost of revenue has generally grown with users rather than revenue, which in this environment puts some pressure on gross margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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