Pinterest, which despite missing earnings and revenue estimates on weaker-than-expected guidance, saw its users beat forecasts in the second quarter, rallying wildly.
In particular, the technology giant announced for the second quarter of the year earnings of 11 cents per share against analysts’ estimate of 18 cents.
At the same time, it saw its revenue at $666 million, slightly below the market forecast of $667 million.
Pinterest also reported that its worldwide active users fell 5% year-over-year to 433 million.
While the drop is worrying for a social media app that depends on users to pull in ads, analysts had expected a steeper decline to 431 million, with the market looking happy to have been avoided.
Thus, the stock of Pinterest is moving in electronic trading after the end of the session on Wall Street with a wild rally of more than 20%.
However, the guidance given by the company for the next quarter was also negative, saying that it expects revenue growth in “mid-single-digit percentages on an annual basis”, lower than analysts’ forecasts for a sales increase of 12.7%.
Source: Capital
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