Yahoo Finance

• Revenue: $855 million, up 16% year-over-year.

• Adjusted EBITDA: $172 million, with a margin of 20%, up 300 basis points from last year.

• Monthly Active Users (MAUs): 570 million globally, a 10% increase year-over-year.

• US and Canada Revenue: $663 million, growing 12% year-over-year.

• Europe Revenue: $147 million, growing 24% on a reported basis.

• Rest of World Revenue: $45 million, growing 49% on a reported basis.

• Ad Impressions: Grew 49% year-over-year.

• Ad Pricing: Declined 22% year-over-year.

• Cost of Revenue: $193 million, up 10% year-over-year.

• Non-GAAP Operating Expense: $494 million, up 12% year-over-year.

• Free Cash Flow: $356 million.

• Cash, Cash Equivalents, and Marketable Securities: $2.6 billion.

• Share Repurchases: $175 million allocated in Q1.

• Q2 Revenue Guidance: Expected to be in the range of $960 million to $980 million, representing 12% to 15% growth year-over-year.

• Q2 Adjusted EBITDA Guidance: Expected to be in the range of $217 million to $237 million.

• Warning! GuruFocus has detected 5 Warning Signs with PINS.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pinterest Inc (NYSE:PINS) achieved a record number of 570 million monthly active users (MAUs) globally, reflecting a 10% growth year-over-year.

• The company reported Q1 2025 revenue of $855 million, marking a 16% increase year-over-year, driven by strong advertiser performance across the full funnel.

• Adjusted EBITDA grew to $172 million, demonstrating Pinterest Inc (NYSE:PINS)'s focus on driving profitable growth while investing in high ROI areas.

• Pinterest Inc (NYSE:PINS) has enhanced its visual search capabilities, with its proprietary multimodal AI model being 30% more likely to recommend relevant content than leading off-the-shelf models.

• The company is successfully expanding its lower-funnel shopping playbook internationally, with shopping ad revenue in Europe and Rest of World regions growing over 3 times faster than overall revenue growth in those areas.

Negative Points

• Ad pricing declined 22% year-over-year, primarily due to international mix shift as Pinterest Inc (NYSE:PINS) began serving ads in previously unmonetized or under-monetized international markets.

• Despite strong click growth, there is a gap between click growth and advertising dollar growth, indicating a need for better implementation of measurement tools and easier campaign creation.

• The macroeconomic environment remains uncertain, with some pockets of ad spend impacted by tariffs, particularly from Asia-based e-commerce retailers in the US.

• The company is still in the early stages of driving adoption of its Performance+ suite, with more functionality and advertiser adoption needed to fully realize its potential.

• Pinterest Inc (NYSE:PINS) faces challenges in shifting advertiser perception from being a platform for long-term planning to one that also drives immediate clicks and conversions.