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Pinterest Shares Jump After Strong First-Quarter Results

Prime Highlights

  • Pinterest beat earnings and revenue estimates, sending shares up 15 per cent.
  • Strong guidance and rising user growth supported investor confidence.

Key Facts

  • Pinterest’s monthly active users increased to 631 million in the first quarter.
  • The company acquired tvScientific for about $465.1 million.

Background

Pinterest reported first-quarter earnings above market expectations, driven by stronger revenue growth, rising user numbers and improved advertising performance. Following the results, the company’s shares jumped about 15 per cent in after-hours trading.

The social media platform posted adjusted earnings of 27 cents per share, higher than analyst estimates of 23 cents. Revenue reached $1.01 billion, beating projections of $966 million. First-quarter sales increased 18 per cent compared with the same period last year.

Pinterest reported a net loss of $73.59 million, or 12 cents per share, compared with net income of $8.92 million a year earlier. Despite the loss, operating performance improved as adjusted EBITDA reached $207 million, above expectations of $176 million.

The company also issued stronger guidance for the second quarter. Pinterest expects revenue between $1.13 billion and $1.15 billion, ahead of market forecasts of $1.11 billion. Adjusted EBITDA is projected between $256 million and $276 million.

Global monthly active users rose 11 per cent year on year to 631 million, matching expectations. Average revenue per user reached $1.61, higher than forecasts of $1.54, showing better monetisation across its platform and stronger advertiser demand.

Pinterest said it spent about $465.1 million, mainly in cash, to acquire tvScientific in February. The company said the deal would help extend Pinterest’s audience data and consumer intent signals into connected television advertising campaigns.

Management said large retailers remained a challenge during the quarter due to tariff-related pressure, but artificial intelligence tools helped improve ad bidding and reduced some of the impact later in the period.

The company also said geopolitical tensions and higher oil prices created limited pressure in some international markets. Pinterest added that these factors were already considered in its second-quarter guidance.