Pinterest Inc. posted revenue that beat analysts’ expectations, but the news was overshadowed by rising costs.
(Bloomberg) — Pinterest Inc. posted revenue that beat analysts’ expectations, but the news was overshadowed by rising costs.
The company’s stock fell as much as 11% on Thursday after reporting a bigger net loss than analysts expected. The company posted a first-quarter net loss of $209 million, compared to the $131.1 million average expectation from analysts.
The company spent on layoffs and office closures as well as expansion. Spending more is “weighing on margins at a time when many Big Tech players are reining in costs,” said Jeremy Goldman, an analyst at Insider Intelligence.
Pinterest beat expectations on revenue and user growth. Revenue grew 5% to $603 million for the quarter, above the average analysts’ estimate of $592.8 million.
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