The selling appears to be from MAU miss and guidance for U.S. users.
6/n
$PINS
I'm very happy with these initial numbers, will dive in now to see if there is a wart.
The company is growing faster than even I anticipated.
Q1 +78%, Q2 +105%
Now time to read...
7/n
$PINS
OK, digested the report, and here are some more thoughts.
First, since MAUs are the thing, let's go there.
8/n
$PINS
"MAUs continued to grow in both the US and international markets during Q1, with particular strength coming from users under the age of 25, a persistent trend that we’ve seen for many quarters.
"Gen Z Pinners tend to also be more engaged than older users."
9/n
$PINS
We noted two weeks ago the prior bearish thesis:
Pinterest will miss out on the younger generation which is the money honey pot
...
10/n
$PINS
And wrote: "The number of Gen Z users grew by 40% between 2019 and 2020. In terms of generational demographics, Pinterest saw the most growth last year with Gen Z."
Then we got the news for Q1 2021:
11/n
$PINS
Next up w MAUs we got:
Total MAU: 478 million, a 30% year over year growth versus analyst estimates of 480.5 million.
(A miss)
And then...
12/n
$PINS
"Since Q2 2020, we have noted the strong correlation between lockdowns and engagement on Pinterest.
"We believe that lockdowns probably pulled forward some user growth during 2020, particularly in the US where our service has been available longer."
13/n
$PINS
"Starting in mid-March, the easing of pandemic restrictions slowed US MAU growth ... as people spent less time online.
"In Q1, we saw good retention of the MAUs we gained during 2020, but we still don’t know if or how long this retention will last."
14/n
$PINS
This feels like a temporary slowdown due to comps from COVID.
At this point, not concerned and I still feel that Pinterest is on its way to 1B MAU within 5 years.
15/n
$PINS
But then there was exceptionally good news as well.
"Based on what we’ve observed in the U.S. recently, we believe that post-COVID shopping engagement could be more resilient than overall engagement."
"Social commerce" is a big deal.
16/n
$PINS
ARPU has shown remarkable strength.
Global ARPU: $1.04 versus analyst estimates of $0.99
(a beat)
U.S. ARPU: $3.99 (+50% yoy) versus estimates of $3.86
(a beat)
International ARPU: $0.26 (+91% yoy) versus estimates of $0.23.
(a beat)
CML Pro members I am speaking about $FTCH in Community.
Some thoughts on $FTCH
With Farfetch, we have a third leg to the story — China.
/1
As you will read with our earnings review in a couple of weeks, Farfetch has a fabulous position in China — unusually strong for a non Chinese brand.
We got news from Alizila, which is Alibaba’s for profit news outlet, that Farfetch has launched its Luxury Pavilion.
...
/2
Here’s a snippet:
------
Farfetch officially debuted its digital store on Tmall Luxury Pavilion on Monday – a move that drastically expands the range of products available to millions of shoppers on the Alibaba-owned platform for luxury and designer brands.
This may be the largest thematic we cover, perhaps eclipsing the size of the genomics space.
In the future we believe that research shops and analysts will begin to use the word "engament" not as verb to describe activity on a platform but as a thematic.
Let me explain...
/2
(Virutally) every company in the in world, digital or otherwise, sews sales rise as engament rises.
First, some non obvious examples:
* More time in an aisle at a grocery story means more sales and loyalty.
* More time at an auto dealer means a more likely sale.
...
/3
This is how negotiations work. It's game theory, specifically it's called "anchoring."
* Biden puts out a $2.7T infra proposal, knowing that won't fly, but in a hope to get lawmakers attached to the $2.7T number. The idea is "how much lower than $2.7T will it be."
/1
* GOP knows this, ofc, so they try to re-anchor with a $550B infra proposal, to get lawmakers attached to that number. They too know that won't fly. The idea is to change it from "how much lower than $2.7T will it be," to "how much above $550B will it be."
...
/2
* Biden also knows this, ofc, so he starts tugging on raising taxes, knowing full well those numbers won't fly but anchoring on "capital gain tax increase and personal income tax increase."