Pinterest’s latest earnings report is ambiguously described as a mixed bag of results, and that sends its share price down sharply in a single trading session. A twitter user even jokingly tweeted that the market is so quiet that you can hear a “pin” drop.
Most of the metrics reported by Pinterest had beaten analyst expectations by a landslide. For instance, revenue was $613.21 mil USD, up 125% year on year (consensus $562.13 mil USD), ARPU was $1.32 USD up by 89% year on year (consensus $1.17 USD), and adjusted earnings per share (EPS) of $0.25 USD (consensus $0.13 USD).
Unfortunately, the metric that mattered the most to analysts was the monthly active users (MAU) - a paltry 454 mil users compared to 482 mil forecasted by Street Account. The prior quarter’s MAU was 478 mil, which translates to a 24 million drop in MAU, and that is a significant loss by all accounts....