Earnings Release Is Pinterest (PINS) A Buy?

 

Pinterest, Inc. (NYSE: PINS) today announced financial results for the quarter ended March 31, 2021.

  • Q1 revenue grew 78% year over year to $485 million.
  • Global Monthly Active Users (MAUs) grew 30% year over year to 478 million.
  • GAAP net loss was $(22) million for Q1. Adjusted EBITDA was $84 million for Q1.

“Whether it’s recipe ideas during the pandemic or dream vacation planning for the future, I’m proud that we now help 478 million people every month find inspiration to create a life they love,” said Ben Silbermann, CEO and co-founder, Pinterest. “This quarter, we continued strong growth internationally, including our recent launch of advertising in Brazil, and made significant progress with shopping, making it easier for people to discover and buy products they find on Pinterest.”

“Q1 results were strong, building off the momentum of 2020. Continued rapid growth of our international business and increased adoption from medium and small advertisers drove 78% year-over-year revenue growth,” said Todd Morgenfeld, CFO and Head of Business Operations, Pinterest. “While we continue to navigate COVID-19 uncertainty, we plan to stay focused on driving investments that deliver an inspirational Pinner experience and measurable advertiser value.”

Q1 2021 Financial Highlights

The following table summarizes our consolidated financial results (in thousands, except percentages, unaudited):

Three Months Ended March 31,

% Change

2021

2020

Revenue

$

485,230

$

271,940

78

%

Net loss

$

(21,674

)

$

(141,196

)

85

%

Non-GAAP net income (loss)*

$

78,527

$

(59,916

)

NM

Adjusted EBITDA*

$

83,824

$

(53,320

)

NM

Adjusted EBITDA margin*

17

%

(20

)

%

NM – not meaningful

* Non-cash charitable contributions of $1.5 million were not excluded for non-GAAP purposes for the three months ended March 31, 2020 as these were not material. For more information on these non-GAAP financial measures, please see “―About non-GAAP financial measures” and the tables under “―Reconciliation of GAAP to non-GAAP financial results” included at the end of this release.

 

 

 

Q1 2021 Other Highlights

The following table sets forth our revenue, MAUs and average revenue per user (“ARPU”) based on the geographic location of our users (in millions, except ARPU and percentages, unaudited):

Three Months Ended March 31,

% Change

2021

2020

Revenue – Global

$

485

$

272

78

%

Revenue – United States

$

390

$

237

65

%

Revenue – International

$

95

$

35

170

%

MAUs – Global

478

367

30

%

MAUs – United States

98

90

9

%

MAUs – International

380

277

37

%

ARPU – Global

$

1.04

$

0.77

34

%

ARPU – United States

$

3.99

$

2.66

50

%

ARPU – International

$

0.26

$

0.13

91

%

Guidance

We continue to navigate uncertainty given the ongoing COVID-19 pandemic and other factors. Our current expectation is that Q2 revenue will grow around 105% year over year. In Q2, we expect global MAUs to grow in the mid-teens and US MAUs to be around flat on a year-over-year percentage basis. Finally, we expect sequential operating expense growth to accelerate in Q2 as we continue to ramp investments in our long-term initiatives and growth drivers.

We intend to provide further detail on our outlook during the conference call.

Our strategic priorities for 2021 remain anchored in content, the Pinner experience, advertiser success and shopping. We plan to continue investing in these this year. We expect R&D efforts to continue to focus on Pinner product, ad product and measurement investments. We intend to grow our headcount further, in particular to support our international expansion efforts. We also intend to scale our comprehension and brand marketing efforts in 2021. We think these investments will support long-term growth and continue to build the foundations for a scaled business over time.

CWEB Analyst’s have initiated a Buy Rating for Pinterest, Inc. (NYSE: PINS)   and potential upside of $200 by 2021.


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