May 16, 2019 / 8:50 PM / 10 days ago

UPDATE 2-Pinterest shares plummet on disappointing 2019 revenue forecast

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May 16 (Reuters) - Pinterest Inc on Thursday gave an unimpressive full-year 2019 revenue forecast after first-quarter sales beat estimates in its first quarter as a publicly traded company, sending shares down 16% in extended trading.

The online scrapbook company's shares have risen 62% from its initial public offering price of $19 last month.

"Clearly the after-hours pullback is a reflection of investor expectations being too high heading into the quarter," DA Davidson analyst Tom Forte said.

Unlike Pinterest, other companies that made their stock market debut in 2019 such as Lyft Inc and Uber Technologies Inc have seen a steep drop. Uber shares have fallen nearly 18% since its IPO, while Lyft is down about 23%.

Pinterest expects full-year revenue between $1.055 billion and $1.08 billion, the mid point of which is slightly above analysts' estimate of $1.06 billion.

The company's sales outlook was a disappointment said Forte, especially given the high expectations reflected in the run up in shares.

Pinterest, which calls its users "pinners", added 291 million monthly active users globally in the first quarter, above estimates of 289.3 million, according to IBES data from Refinitiv.

Average revenue per user rose 26% to 73 cents, the company said.

Net loss narrowed to $41.4 million in the quarter ended March 31 from $52.7 million a year earlier. Excluding certain items, the company lost 32 cents per share.

Analysts had expected a loss of 11 cents, but that was based on a different share count, according to IBES data from Refinitiv.

Total revenue rose about 54% to $201.9 million, beating estimates of $200.6 million.

Reporting by Vibhuti Sharma and Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli

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