Shares of visual search engine and social-media platform Pinterest (NYSE:PINS) tumbled on Friday, falling more than 13% by market close. The decline was triggered by the company's worse-than-expected non-GAAP loss per share.
The pullback in Pinterest's stock price gives investors an opportunity to take a second look at the company, which has only been public for a month.Here's an overview of the most important numbers from Pinterest's first-quarter update.
Highlighting how rapidly Pinterest is growing, the company's top line increased 54% year over year in Q1. This easily trumps both Twitter's (NYSE:TWTR) and Snap's (NYSE:SNAP) revenue growth rate during the same period. Twitter's first-quarter revenue increased 18% year over year,and Snap's rose 39%.
Notably, however, this growth was a deceleration from 58% and 64% year-over-year revenue growth in the respective fourth and third quarters of 2018.
Pinterest's first-quarter revenue was $202 million. For context, this is well behind Twitter's first-quarter revenue of $787 million but not too far behind Snap's $320 million of revenue.
Pinterest's global monthly active users increased 22%, to 291 million. This was driven by 6% growth in U.S. users and 29% growth internationally.
Average revenue per user (ARPU) jumped, rising 26% year over year, to $0.73.
"An increase in the number of advertisements drove higher ARPU year-over-year in both the U.S and internationally," explained management in the company's first-quarter shareholder letter."Our ability to provide more ads was supported by higher demand from new and existing advertisers on our platform."
While Pinterest remains unprofitable, the company's quarterly net loss importantly narrowed, improving from a loss of $52.7 million in the year-ago quarter to a loss of $41.4 million in the first quarter of 2019.
On a non-GAAP basis, Pinterest's net loss was $40.4 million -- better than a non-GAAP net loss of $47.8 million in the year-ago quarter.
Highlighting the scalability of Pinterest's business, the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved from negative 35% in the first quarter of 2018 to negative 19% in the first quarter of 2019.
Management guided for total revenue in 2019 to be between $1.055 billion and $1.080 billion.
"We expect to maintain strong momentum in our business as we achieve larger scale. We expect revenue to grow 40%-43% compared to full-year 2018, driven by improving ARPU, particularly in the U.S.," management said in the company's first-quarter shareholder letter.