(Bloomberg) -- Pinterest Inc. withdrew full-year revenue and profitability forecasts after the coronavirus pandemic hurt its advertising business.
“Pinterest is currently not in a position to forecast the expected impact of COVID-19 on its financial and operating results for the remainder of 2020,” the company said in a statement. “As the COVID-19 pandemic has continued to unfold, it has impacted Pinterest’s advertising revenue globally.”
In February, the digital search and scrap-booking company projected 2020 revenue of $1.52 billion and said its adjusted profit margin would be flat to up slightly from a year earlier.
On Tuesday, the company reported preliminary first-quarter sales of $269 million to $272 million, slightly ahead of analyst estimates. It also said monthly active users totaled 365 million to 367 million in the period, higher than Wall Street estimates of 345 million users, according Bloomberg MODL data.
”First-quarter revenue performance was consistent with our expectations through the middle of March, when we began to see a sharp deceleration,” Chief Financial Officer Todd Morgenfeld said.
Pinterest also said that Chief Operating Officer Francoise Brougher was leaving the company effective immediately. Brougher joined Pinterest in early 2018 from payments company Square Inc. Morgenfeld has been appointed to take over her duties.
“As we continue to position the company for long-term growth, we believe consolidating our financial and COO organizations under one leader will accelerate our speed of execution,” CEO Ben Silbermann said in a statement.
Pinterest said it ended the first quarter with about $1.7 billion in cash, cash equivalents and marketable securities, no financial debt, and an undrawn $500 million revolving credit facility.
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