Pinterest (NYSE:PINS) shares sank Wednesday after the company’s second-quarter earnings report revealed expenses grew faster than revenue.
Revenue amounted to $708 million vs. $696 million expected, according to Refinitiv. The company enjoyed earnings to 21 cents per share, adjusted, vs. 12 cents expected.
Sales in the company’s second quarter jumped 6% year over year, while net losses narrowed by 19% to $35 million, or five cents per share, from $43.1 million, or seven cents per share, a year earlier.
Pinterest said its total costs and expenses were $781 million during the second quarter, an 11% increase from the $700 million it recorded the previous year during the same period.
The company said that it expects its third-quarter sales “to grow in the high single digits range year over year” while its third quarter non-GAAP operating expenses would “grow in the low single digits range year over year.”
“In Q2, we continued to build momentum with consumers and advertisers while further accelerating our pace of innovation,” Pinterest CEO Bill Ready said in a statement. “Over the past year, we’ve been laser-focused on our key differentiators and we’re seeing results.”
Pinterest said its global monthly active users jumped 8% year over year to 465 million during the period.
PINS shares gave back 49 cents, or 1.7%, to $28.50.
