Pinterest (PINS) delivered a mixed but ultimately bullish first-quarter earnings report that sent its shares soaring more than 11% on Friday.
While adjusted earnings per share came in slightly below expectations, the social media platform beat revenue estimates and issued an upbeat second-quarter outlook that reassured investors amid a murky advertising landscape.
Revenue Beats, User Growth Surprises
Pinterest reported first-quarter revenue of $855 million, a 16% year-over-year increase and ahead of Wall Street projections. The company’s adjusted EBITDA rose to $172 million, delivering a 20% margin — a notable 300 basis-point improvement from the same period a year earlier. However, the adjusted earnings per share missed analyst expectations by $0.03.
The real standout figure: global monthly active users (MAUs) reached a record 570 million, up 10% from the prior year. That growth beat analyst forecasts and is particularly striking given Q1 is typically a seasonally soft quarter for Pinterest. This user expansion — especially among Gen Z — is fueling a strategic pivot toward lower-funnel commerce and international monetization.
The company generated $1.52 in average revenue per user (ARPU), a 5% increase over the previous year. Gains were especially strong outside the U.S., with ARPU in Europe and the “Rest of World” segments rising 17% and 29%, respectively.
AI and Global Expansion Drive Momentum
Pinterest's renewed focus on artificial intelligence is transforming how it serves ads and personalizes the user experience. CEO William Ready emphasized that the company is “early in demonstrating [its] unique value proposition,” highlighting that 80% of campaigns using its Performance+ suite now outperform traditional campaigns.
Its proprietary multimodal AI engine is reportedly 30% more effective at content recommendation than standard models, and Pinterest is leveraging this advantage to improve ad relevance and click-through rates. This strategy appears to be paying off — ad impressions rose 49% year-over-year in Q1, though average ad pricing declined 22% due to an ongoing international shift in ad inventory.
While some ad buyers, particularly Asia-based e-commerce companies, scaled back spending following regulatory changes like the rollback of the “de minimis” import exemption in the U.S., Pinterest has offset those headwinds with growing demand in Europe and other international regions.
Pinterest also allocated $175 million to share repurchases in the first quarter and ended with a strong balance sheet, holding $2.6 billion in cash and equivalents. Free cash flow came in at $356 million, underscoring a focus on profitable growth while investing in AI and shopping innovation.
Billionaire hedge fund manager Paul Singer’s Elliott Management holds an $812 million stake in Pinterest. Known for aggressive value-unlocking strategies, Singer has identified the visual discovery platform as one of his top stock picks with “huge upside potential.” Pinterest now ranks fifth on a list of Elliott’s high-conviction holdings.
With AI integration deepening, user engagement surging, and international monetization accelerating, Pinterest appears to be rewriting its playbook — from digital mood board to serious advertising contender.
Conclusion
This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.
Pinterest reported first-quarter revenue of $855 million, a 16% year-over-year increase and ahead of Wall Street projections. The company’s adjusted EBITDA rose to $172 million, delivering a 20% margin — a notable 300 basis-point improvement from the same period a year earlier. However, the adjusted earnings per share missed analyst expectations by $0.03.
The real standout figure: global monthly active users (MAUs) reached a record 570 million, up 10% from the prior year. That growth beat analyst forecasts and is particularly striking given Q1 is typically a seasonally soft quarter for Pinterest. This user expansion — especially among Gen Z — is fueling a strategic pivot toward lower-funnel commerce and international monetization.
The company generated $1.52 in average revenue per user (ARPU), a 5% increase over the previous year. Gains were especially strong outside the U.S., with ARPU in Europe and the “Rest of World” segments rising 17% and 29%, respectively.
AI and Global Expansion Drive Momentum
Pinterest's renewed focus on artificial intelligence is transforming how it serves ads and personalizes the user experience. CEO William Ready emphasized that the company is “early in demonstrating [its] unique value proposition,” highlighting that 80% of campaigns using its Performance+ suite now outperform traditional campaigns.
Its proprietary multimodal AI engine is reportedly 30% more effective at content recommendation than standard models, and Pinterest is leveraging this advantage to improve ad relevance and click-through rates. This strategy appears to be paying off — ad impressions rose 49% year-over-year in Q1, though average ad pricing declined 22% due to an ongoing international shift in ad inventory.
While some ad buyers, particularly Asia-based e-commerce companies, scaled back spending following regulatory changes like the rollback of the “de minimis” import exemption in the U.S., Pinterest has offset those headwinds with growing demand in Europe and other international regions.
Pinterest also allocated $175 million to share repurchases in the first quarter and ended with a strong balance sheet, holding $2.6 billion in cash and equivalents. Free cash flow came in at $356 million, underscoring a focus on profitable growth while investing in AI and shopping innovation.
Wall Street Optimism and Hedge Fund Interest
Pinterest expects second-quarter revenue to come in between $960 million and $980 million — above consensus estimates — representing 12% to 15% growth. Adjusted EBITDA is forecast between $217 million and $237 million.
The optimistic outlook drew strong investor response, propelling the stock to add approximately $2 billion in market capitalization. At 14.5 times forward earnings, Pinterest trades at a notable discount compared to peers like Reddit (RDDT 67.7x) and Snap (SNAP 22.2x), despite stronger user growth and monetization metrics.
Pinterest expects second-quarter revenue to come in between $960 million and $980 million — above consensus estimates — representing 12% to 15% growth. Adjusted EBITDA is forecast between $217 million and $237 million.
The optimistic outlook drew strong investor response, propelling the stock to add approximately $2 billion in market capitalization. At 14.5 times forward earnings, Pinterest trades at a notable discount compared to peers like Reddit (RDDT 67.7x) and Snap (SNAP 22.2x), despite stronger user growth and monetization metrics.
Billionaire hedge fund manager Paul Singer’s Elliott Management holds an $812 million stake in Pinterest. Known for aggressive value-unlocking strategies, Singer has identified the visual discovery platform as one of his top stock picks with “huge upside potential.” Pinterest now ranks fifth on a list of Elliott’s high-conviction holdings.
With AI integration deepening, user engagement surging, and international monetization accelerating, Pinterest appears to be rewriting its playbook — from digital mood board to serious advertising contender.
Conclusion
The challenge for Pinterest will be to bridge the gap between growing user clicks and advertiser dollars. But with strategic investments in AI and global commerce, the company is positioning itself as a rare bright spot in an otherwise uncertain ad tech environment.
Considering a $1,000 investment in these companies?
Our team at Stock Investor carefully curated a list of top stocks with the potential for significant returns, suitable for beginners and seasoned investors alike who are eager to learn a trade and unearth the best stocks to buy. Though not featured in this article, these selected stocks could be game-changers in the future.For those seeking dynamic trading experiences, consider joining our Swing Trade Alerts, Option Income Alert, or our Trading Room. Take advantage of our special offer today, starting at just $1 in the first month.
Unlock the secrets of Smart Money
Explore how billionaires and institutions are influencing the market. Follow their every move with DarkOption Flow and stay updated on essential market insights. Begin your journey to informed investing today!
Education
And if you're a fan of Invest opedia, you'll appreciate what we offer at SharperTrades even more. Explore our comprehensive option trading course and technical trading course, where you can learn trading, analyze stocks, delve into chart patterns for stocks, and gain invaluable insights for making the best company investments.
Unlock Your Stock Market Edge with SharperTrades. Dive into powerful trading tools, learn a trade, and receive expert guidance. Stay up-to-date with regular market updates. Learn trading, basics of investing, and how to pick the best stocks to buy. Whether you're a beginner or seasoned investor and trader, we've got you covered. Get started for free, today!