Here's Why I'm Not Sweating Pinterest's Soaring Q2 Expenses
The good news is that Pinterest (NYSE: PINS) grew its top line to the tune of $42 million during its second quarter of the year. The bad news is that this growth cost the company an extra $81 million to produce.
Pinterest's operating loss more than doubled year over year, in fact, while its net loss only contracted thanks to a tax-based benefit. It's not exactly a step in the right direction for the new and improved Pinterest. That's why shares fell following the release of its second-quarter numbers, despite top-line growth.
There's an important footnote about this company's Q2 results that's being mostly overlooked, however. That is, Pinterest didn't exactly spend an additional $81 million to produce $42 million worth of revenue growth. It effectively only spent another $29 million on the growth effort.
Source Fool.com
