Pinterest shares spiked higher in late trading on Tuesday after the company pre-announced better-than-expected March quarter results—while withdrawing guidance for the full year, and warning that it is seeing softening advertising demand.
For the quarter, Pinterest (ticker: PINS) now expects to report revenue of $269 million to $272 million, above the Street consensus at $266.7 million. The digital pin board site sees global monthly active users of 365 million to 367 million, with 89 to 90 million in the U.S. and 276 million to 277 million internationally. Pinterest said it ended the quarter with $1.7 billion in cash and equivalents, no debt and an undrawn $500 million revolving credit facility.
That said, the company added that “Pinterest is currently not in a position to forecast the expected impact of Covid-19 on its financial and operating results for the remainder of 2020,” and cautioned that the pandemic “has impacted Pinterest’s advertising revenue globally.” The company had previously projected full-year 2020 revenue of $1.52 billion.
Pinterest is the latest ad-supported Internet business to warn about weakening advertising demand. Previous warnings have come from Twitter (TWTR), Facebook (FB) and IAC (IAC). First quarter revenue “was consistent with our expectations through the middle of March, when we began to see a sharp deceleration,” Chief Financial Officer Todd Morgenfeld noted in a statement. He said the company’s exposure to weakened areas of the economy like travel, automotive, and restaurants has not been significant.
The company also announced that chief operating officer Françoise Brougher is leaving Pinterest, effective today, and that Morgenfeld will assume her responsibilities. The company did not provide an explanation for the change.
Pinterest late Tuesday was up 12.4%, to $16.93.