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Jun 30, 2020

Pinterest Q2 2020 Earnings Report

Pinterest's revenue grew, MAUs increased significantly, and the company addressed COVID-19 impacts and racial justice efforts.

Key Takeaways

Pinterest's Q2 2020 saw a 4% increase in revenue year-over-year to $272 million, driven by conversion optimization, shopping ads, and international markets. Global MAUs grew by 39% to 416 million. The company reported a GAAP net loss of $(101) million and an adjusted EBITDA loss of $(34) million.

Revenue grew 4% year-over-year, with improvements each month of the quarter.

Global MAUs increased by 39% year-over-year, reaching 416 million.

GAAP net loss was $(101) million, and adjusted EBITDA was $(34) million.

Growth was driven by conversion optimization, shopping ads, medium-sized advertisers, and international markets.

Total Revenue
$272M
Previous year: $261M
+4.3%
EPS
-$0.07
Previous year: -$0.06
+16.7%
Global MAUs
416M
Previous year: 299M
+39.1%
U.S. MAUs
96M
Previous year: 85M
+12.9%
Global ARPU
$0.7
Previous year: $0.88
-20.5%
Gross Profit
$164M
Cash and Equivalents
$864M
Total Assets
$2.25B

Pinterest

Pinterest

Pinterest Revenue by Geographic Location

Forward Guidance

Given the continued 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 full year 2020. Our current expectation is that Q3 revenue will grow in the mid-30% range year over year.

Positive Outlook

  • We estimate, on a preliminary basis, year-over-year revenue growth for the month of July to be about 50% through July 29th.
  • We are encouraged by the performance of our business in July.
  • We want to remain prudent in the near-term.
  • We will ensure we invest in and prioritize the long-term growth of the company.
  • We intend to provide further detail on recent trends and on our outlook during the conference call.

Challenges Ahead

  • Given the continued 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 full year 2020.
  • A tremendous amount of uncertainty remains given the ongoing COVID-19 pandemic and other factors.
  • We also continue to evaluate our levels of spending as the environment evolves.
  • Undue reliance should not be placed on the forward-looking statements in this letter to shareholders, which are based on information available to us on the date hereof.
  • We undertake no duty to update this information unless required by law.

Revenue & Expenses

Visualization of income flow from segment revenue to net income