A number of major tech IPOs have been relatively disappointing following going public earlier this year. While the hype behind these multi-billion-dollar IPOs has subsided a little, some of these stocks have done exceedingly well.

Pinterest Earnings

The most notable of which is Beyond Meat (NASDAQ: BYND), whose shares have more than tripled since going public back in May. Another stock that’s performed relatively well has been Pinterest (NYSE: PINS), whose shares surged by 15 percent on Thursday after it reported better-than-expected quarterly results.

The social discovery platform posted revenue figures of $261.2 million, as opposed to the $236 million seen from last quarter. Adjusted EBIDTA figures still reported a loss, coming in at $26 million, but it has been shrinking as the company comes closer to becoming profitable.

Overall, Pinterest exceeded consensus estimates, which had predicted the company would see $1.079 billion in total revenues, while now management expects that figure to be as high as $1.115 billion.

Pinterest CEO Comments

Pinterest’s CFO Todd Morgenfeld said in the company’s earnings call that this increase in revenue came from an increase in the number and diversity of advertisers on their platform, including many small businesses across a variety of sectors. At the same time, Pinterest reported that global monthly active users have increased by 30 percent year-over-year to 300 million users during the recent quarter.

“We constantly aim to make Pinterest more personal, relevant and useful to our users. Our MAUs hit 300 million at the end of Q2 as we built and expanded products to support this vision,” Pinterest CEO Ben Silbermann said in a statement according to Barrons. “We also continued to grow and diversify our advertiser base and improve advertisers’ ability to measure the effectiveness of their ad spend. This is part of our larger and ongoing effort to create value for businesses on Pinterest.”

Unlike a number of other social media companies, Pinterest has managed to avoid much of the regulatory scrutiny around data privacy that’s been hounding many of its competitors. Facebook, in particular, has come under fire, but tech giants such as Google as well as becoming increasingly evaluated on how they manage and use the data of their users.

This partially is due to the fact that the company gives users the option of making their Pinterest boards private as well as opting out of any advertised product recommendations.

Shares of Pinterest were up as much as 15 percent in after-hours trading. While the company is now trading a bit above its initial IPO price, it’s not trading anywhere near its peak price at $35.29 per share shortly after going public. Overall, Pinterest is soon as one of the stronger companies that have gone public so far in 2019.

Pinterest Company Profile

Pinterest is an online product and idea discovery platform that helps users gather ideas on everything from recipes to cook to destinations to travel to. Founded in 2010, the platform consists of a largely female audience, at roughly two thirds of its 250 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features. – Warrior Trading News