Pinterest posts impressive earnings as shares rise 15%

In the first quarter, which concluded on March 31, 2025, Pinterest announced its quarterly earnings, revealing a significant increase in shares during extended trading. The U.S.-based social media platform reported revenue of $855 million, exceeding analyst expectations of $847 million. Although earnings per share registered at $0.23, slightly under the projected $0.26, overall revenue is expected to rise even further. The company anticipates second-quarter sales within the range of $960 million to $980 million, which surpasses the average forecast of analysts anticipating $966 million. Pinterest also highlighted increases in its user base and revenue in specific regions. The company recorded 570 million monthly active users in the first quarter, surpassing Street estimates of 565 million. However, first-quarter domestic sales from the U.S. and Canada came in at $663 million, trailing slightly behind the forecast of $664 million. In contrast, Pinterest achieved remarkable performance in Europe, where revenue reached $147 million against expectations of only $141 million. The company also reported an adjusted earning of $172 million for the first quarter, which surpassed the anticipated $164 million, showcasing improved profitability. Julia Brau Donnelly, Pinterest's Chief Financial Officer, addressed analysts concerning the company’s resilience amid economic challenges and the impact of the U.S.-China trade dispute. She noted while the business remains robust, the company is not completely shielded from external market dynamics. There have been specific declines in advertising spending from certain Asia-based e-commerce retailers, influenced by recent changes in trade policies that impact advertising budgets. In light of these challenges, Donnelly expressed optimism regarding Pinterest's advertising products and business strategies. Bill Ready, CEO of Pinterest, discussed the transformative journey of the company. He mentioned the focused effort to shift from a platform characterized by stagnating user numbers and modest growth to a more resilient business model. As part of this evolution, Pinterest aims to cater more to its target demographic, especially focusing on younger generations who are increasingly using the platform for shopping and browsing ideas. In a competitive advertising landscape, wherein giants like Meta and Snap are also navigating uncertainties and fluctuations in their advertising expenditure, Pinterest's emphasis on its advertising tools could encourage further engagement and revenue growth.