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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.
Pinterest
Pinterest
Pinterest Revenue by Geographic Location
Revenue by Geographic Location
U.S. and Canada Revenue
CapyFin.comEurope Revenue
CapyFin.comRest of World Revenue
CapyFin.com 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.
- Expect to continue to grow operating expenses in Q220 year over year, but at a slower pace compared to Q120.
- No guidance expectations for revenue or Adjusted EBITDA for 2020.