Pinterest shares soared 15% in after-hours trading following the release of its first-quarter earnings, which exceeded expectations and offered an optimistic outlook for the future. The social media platform reported revenue of $855 million, surpassing analysts’ estimates of $847 million. Earnings per share came in at $0.23, slightly below the expected $0.26, but the company still managed to beat expectations in several key areas.
Pinterest’s second-quarter revenue forecast of $960 million to $980 million exceeded the consensus estimate of $966 million. The company also saw growth in its user base, reaching 570 million monthly active users, which was ahead of the expected 565 million. This uptick in users helped drive revenue from the U.S. and Canada, which amounted to $663 million, just shy of the $664 million analysts had predicted. However, Pinterest’s European revenue came in at $147 million, surpassing the forecasted $141 million.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter totaled $172 million, which was higher than the $164 million anticipated by Wall Street. The company’s EBITDA margin for the period was 20%, exceeding the expected 19.4%. Global average revenue per user (ARPU) remained in line with expectations at $1.52.
Despite challenges in the macro environment, Pinterest’s finance chief, Julia Brau Donnelly, expressed confidence in the company’s ability to weather economic uncertainties, particularly in digital advertising. She noted that while some Asia-based e-commerce retailers had cut back on digital advertising spend due to recent trade-related shifts, Pinterest’s overall business remains strong. CEO Bill Ready emphasized that Pinterest has transformed from a platform with slowing user growth and modest revenue to a leading destination for shoppers, particularly among Gen Z consumers.
Pinterest joins a growing list of digital advertising companies facing a tough economic landscape. While many tech companies, including Meta, have reported strong earnings, they remain cautious about the future, particularly with regard to advertising spend from Asia-based businesses. Despite these concerns, Pinterest’s ability to grow its user base and deliver solid financial results has helped the company remain resilient in a challenging market.
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