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Pinterest reported first-quarter revenue of $1.008 billion, up 18% year over year, as global monthly active users climbed to an all-time high of 631 million — an 11% increase from the same period last year.
On a per-share basis, adjusted profit of 27 cents topped the 23-cent consensus estimate from LSEG analysts, per CNBC, while the $966 million revenue forecast was also surpassed. The company recorded a GAAP net loss of $73.6 million for the quarter, a reversal from the $8.9 million in net income it reported during the same period a year ago.
The quarter's adjusted EBITDA of $207 million came in well ahead of the $176 million analysts had forecast, per CNBC, and free cash flow for the period totaled $312 million.
Looking ahead, Pinterest guided Q2 revenue to a range of $1.133 billion to $1.153 billion, which would translate to 14% to 16% year-over-year growth and tops the $1.11 billion Wall Street had anticipated, per CNBC. Adjusted EBITDA for the same period is projected at $256 million to $276 million.
Revenue from the Rest of World region grew the most, rising 59% year over year to $72 million, while Europe revenue rose 27% to $186 million. U.S. and Canada revenue increased 13% to $750 million. Global average revenue per user was $1.61, up 6% from a year earlier.
A February deal to bring connected TV advertising analytics firm tvScientific into the fold cost Pinterest roughly $465.1 million, mostly in cash, per CNBC. On the earnings call, CEO Bill Ready framed the purchase as a way "to extend Pinterest's unique consumer intent, signal and audiences beyond our owned and operated properties to power high-performing CTV campaigns."
CFO Julia Donnelly acknowledged on the earnings call that big-box and large retail advertisers continued to weigh on overall growth, though she noted that AI-powered improvements to the platform — bidding optimizations in particular — started to counterbalance that drag as the quarter progressed, per CNBC. On geopolitical risk, Donnelly said Pinterest has seen minimal effect on its ad business from the Middle East conflict, with whatever impact exists concentrated in oil price-sensitive verticals across Europe and the rest-of-world segment — dynamics the company said it already baked into its Q2 outlook, per CNBC.
Pinterest also said it completed approximately $2 billion in share repurchases during the quarter, as previously announced. The company issued $985 million in convertible notes to help fund the buybacks.
The strong quarter follows a period of significant internal change. Pinterest laid off about 15% of its workforce in January — roughly 700 jobs — to redirect resources toward AI-focused roles and teams. The cuts sparked controversy after the company fired two engineers who had built a Slack-based tool to track which colleagues had been let go. CEO Bill Ready characterized the tool as obstructionist; the engineers were dismissed on Jan. 30.
Marking what the company called its tenth straight quarter of double-digit user growth, Ready said in a statement: "We're seeing continued momentum driven by our differentiated visual search product experiences," adding that monetization efforts remain tied to "an AI-powered ads platform that delivers performance for advertisers."
Pinterest stock rose 15% after the report, according to CNBC.