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Pinterest shares fall to their lowest levels since the company’s April IPO. 

On Friday, Pinterest hit a new 52-week low after its shares fell more than 20%. Investors were disappointed when the company fell short on its third-quarter earnings report. And unfortunately, the company’s full-year outlook was just as grim.

Here is an overview of Pinterest’s third-quarter earnings results:

  • Earnings: 1 cent, as opposed to a forecasted loss of 4 cents
  • Revenue: $279.7 million, as opposed to $280.6 million forecasted
  • Monthly active users: 322 million users, as opposed to 311 million forecasted
  • Full-year guidance: Between $1.1 billion and $1.115 billion, as opposed to $1.12 billion forecasted

An overview of Pinterest’s Q3 results

At first glance, Pinterest’s third-quarter earnings don’t seem too bad. Pinterest’s sales grew 47% from a year earlier, and the company is starting to take market share from companies like Facebook and Google. 

And the company continues to find new ways to improve the user experience on its site and grow its monthly active users. According to CEO Ben Silbermann, the company recently redesigned its website “to make the service more intuitive.”

And these improvements seem to be paying off because the company’s monthly active users grew 28% year over year. And its average revenue per user increased 14% year over year, which was slightly below analyst estimates. 

The company did fall short on its revenue, and its full-year guidance was below what most analysts were calling for. These issues may seem small, but investors were expecting much bigger results from the company. 

What’s next for Pinterest

The company’s third-quarter results were good, but they weren’t as good as what Wall Street was hoping for. Even still, there’s a lot to be optimistic about when it comes to Pinterest. 

Although it is a much smaller company, it’s growing at a faster pace than Google and Facebook. And its user base continues to grow, which means more people are finding value from the company’s platform. 

Pinterest’s shares are currently trading at their lowest levels since the company went public last April. This drop could present an excellent buying opportunity for interested investors.