The company reported that in Q2/20 global revenue increased by 4% to $272 million, compared to $261 million in Q2/19. Over the same corresponding period, the company reported a much improved GAAP net loss of $101 million and adjusted EBITDA loss of $34 million, compared with GAAP net loss of $1,159.5 million and adjusted EBITDA loss of $26 million in Q2/19.
The firm highlighted that in Q2/20 Global Monthly Active Users (MAUs) grew 39% year over year to 416 million. The company stated that U.S. MAUs increased by 11 million to 96 million, or by 13%, while the bulk of the growth was achieved in international MAUs, which increased by 106 million to 321 million, representing a 49% YoY increase.
The company's CEO and co-founder Ben Silbermann commented, "This quarter we reached a milestoneómore than 400 million people now come to Pinterest every month to get and stay inspired...In these tough times, we're seeing more and more people rely on Pinterest to cook at home, plan kids activities and set up a home office. Businesses are helping them turn their ideas into reality as people are increasingly discovering and buying products on Pinterest."
Pinterest's CFO and Head of Business Operations Todd Morgenfeld added, "By all accounts, this was a challenging quarter as COVID-19 continued to spread. I'm pleased with the way we responded and remained engaged with our advertising partners...It has been encouraging to see the recovery in our business over the past few months, but there is still a tremendous amount of uncertainty and work to be done."
The company stated that due to the ongoing uncertainties related to the COVID-19 pandemic and current macroeconomic conditions it is not providing forward guidance for FY/20 revenue or adjusted EBITDA.
The firm did provide some estimates on a preliminary basis and stated that year-over-year revenue growth for the month of July through July 29th to be about 50%.
The company advised that it expects Q3/20 revenue will grow in the mid-30% range year over year. The firm indicated that it in order to be prudent it will closely monitor its spending levels as the market environment dictates, but will continue to invest in the long-term growth of the company. Pinterest noted that it is staying true to its priorities of content, ads diversification, use case expansion and shopping.
Pinterest is headquartered in San Francisco, Calif., and describes its business as a visual discovery engine platform. The firm states that people use Pinterest to look for and find inspiration for their lives including home and style ideas, recipes and travel destinations. The company's users have reportedly saved more than 240 billion "Pins" across a wide range of interests that are discoverable by others with similar tastes via recommendations and searches.
Pinterest began the day with a market capitalization of around $14.8 billion with approximately 586.5 million shares outstanding and a short interest of about 4.8%. PINS shares opened 33% higher today at $33.56 (+$8.37, +33.23%) over yesterday's $25.19 closing price. The stock has traded today between $31.00 and $34.50 per share and is currently trading at $33.51 (+$8.36, +32.99%).[NLINSERT]
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