Pinterest announced its first quarter 2025 financial results, reporting higher-than-expected revenue and record user growth but missing on earnings per share. The company's focus on increasing user engagement and expanding its advertiser base contributed to rising revenue and user numbers, though profitability remained under pressure.
Revenue and Earnings Performance
Pinterest posted Q1 2025 revenue of $855 million, a 16% increase from the previous year and ahead of Wall Street expectations. The adjusted earnings per share came in at $0.23, below the consensus forecast of $0.26. GAAP net income totaled $9 million, marking a return to profitability compared to a loss the prior year. Adjusted EBITDA stood at $172 million, up 36% year-over-year, delivering a margin of 20%.[4]
User Growth and Engagement
Global monthly active users reached a record 570 million in Q1 2025, up 10% year-over-year. Growth was broad-based, with U.S. and Canada users reaching 102 million (up 8%), European users at 148 million (up 5%), and the rest of the world growing by 14% to 320 million. Average revenue per user also increased year-over-year, reflecting improved monetization and engagement across key markets.[4]
Market Response and Company Guidance
Pinterest shares rose following the earnings announcement, as investors responded positively to the company's momentum in both revenue and user growth. For the second quarter of 2025, Pinterest projects revenue to be in the range of $960 million to $980 million, implying growth of 12% to 15%. The company expects adjusted EBITDA to fall between $217 million and $237 million.[4]
Profitability and Strategic Initiatives
Despite meeting or exceeding top-line expectations, Pinterest faced some pressure on profitability. The EPS miss reflects ongoing investments in artificial intelligence, ad infrastructure, and international expansion. Management has emphasized the role of AI advancements in boosting both user engagement and advertiser performance, aiming to balance growth initiatives with long-term margin improvement.[5]
Analysis
Pinterest's first quarter results show continued strength in user growth and revenue generation, supported by product innovation and expansion into global markets. The company is prioritizing new technologies, such as AI, to improve platform engagement and advertising outcomes. However, the EPS miss signals that investments in these areas are affecting short-term profitability. Experts note that Pinterest's ability to manage ad pricing pressures and control costs will be key as it seeks to deliver sustainable earnings growth alongside rising usage metrics.[5]
Outlook
Looking ahead, Pinterest expects to maintain double-digit revenue growth in the second quarter and continues to invest in user experience and advertising technology. The company faces ongoing challenges from ad market fluctuations and the need to balance growth with profitability. Analysts will be watching Pinterest's execution on strategic initiatives and its ability to convert user growth into higher earnings in subsequent quarters.
