Pinterest (NYSE: PINS) stock surged more than 12% in pre-market trading on Friday after the company posted better-than-expected first-quarter revenue and issued upbeat guidance.
The arts and crafts platform posted earnings of $0.23 per share on revenue of $855 million for the quarter. Wall Street had expected earnings of $0.26 per share on $848.3 million in revenue.
Global monthly active users (MAUs) increased by 10% compared to the previous year, reaching 570 million. The company also saw a 5% rise in global average revenue per user (ARPU), reaching $1.52. ARPU grew by 8% in the U.S. and Canada, 17% in Europe, and 29% in other international markets.
For the second quarter, Pinterest forecasts revenue between $960 million and $980 million, beating the consensus estimate of $966.3 million. It expects adjusted EBITDA between $217 million and $237 million.
Pinterest said its artificial intelligence tools are helping drive ad spending, even as broader economic conditions remain uncertain. The platform’s focus on direct response advertising continues to attract marketers seeking performance-based outcomes.
The upbeat outlook comes amid a changing digital ad landscape. Pinterest acknowledged pressure on ad budgets due to the end of a U.S. duty-free import rule and rising trade tensions. However, it also noted a geographic shift in ad spending from Asia-based retailers toward European and other international users.
“We’re not immune to the macro environment,” CFO Julia Donnelly said during the post-earnings call. “But we’re confident in our multiple revenue initiatives.”
Pinterest also benefits from strong engagement among Gen Z users and increased adoption of its AI-powered “Performance+” ad tools that help create personalized ad campaigns. The company recently signed a new ad deal with Magnite to broaden demand aggregation, adding to existing partnerships with Google (NASDAQ: GOOGL) and Amazon.com (NASDAQ: AMZN).
As of the latest update, Pinterest (NYSE: PINS) shares are up 12.31%, trading at $31.29.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment. Read Full Bio
