Pinterest Shares Plunge After US Users Unsubscribe

Pinterest shares fell about 14% after hours on Thursday after the company reported mixed second-quarter results and said it was unable to provide guidance for the third quarter due to ongoing uncertainty over the coronavirus pandemic.

The online message board company reported a 125% increase in revenue and said its global monthly active users were up 9%. But it saw a 7% drop in US users.

“Our second quarter results reflect both the strength of our business and the recent shift in consumer behavior we’ve seen as people spend less time at home,” said Ben Silbermann, CEO and co-founder of Pinterest, in a statement.

Pinterest PINS,
reported net income of $69.4 million, or 10 cents per share, compared to a loss of $100.7 million, or 17 cents per share, in the same period a year ago. Adjusted for share-based fees and other expenses, earnings were 25 cents per share. Revenue rose to $613.2 million, from $272.5 million in the same quarter a year ago.

Analysts polled by FactSet had forecast earnings of 13 cents a share on revenue of $562 million.

Pinterest shares are up about 10% so far and are up about 190% in the past year, while the S&P 500 Index SPX,
is up nearly 18% so far this year and up 36% in the past 52 weeks. Shares of the company were down more than 6% during the regular session, closing at $72.04 on Thursday.